People Inc. under Barry Diller offered $48.30 per share in cash to acquire the remaining MGM Resorts shares, valuing the deal at $18 billion including debt and representing a 24% premium to its 30-day average. MGM Resorts stock climbed 14% in early trading after the bid, with People Inc. owning 26.1%.
People Inc. proposed to acquire all outstanding MGM Resorts shares at $48.30 per share in cash, valuing the transaction at $18 billion including debt. The offer price represents a 24% premium to the company’s 30-day average stock price.
Prior to the proposal, People Inc. held a 26.1% equity stake in MGM Resorts, representing a $2.9 billion investment. The company built its position over roughly six years, making it the largest shareholder.
MGM Resorts stock surged 14% in early trading following the bid announcement, reflecting investor enthusiasm for the takeover premium and potential privatisation. Trading volumes increased significantly as markets digested the cash offer.
Barry Diller cited deep familiarity with MGM’s assets and belief the company is undervalued as core reasons for the bid. People Inc. intends to fund the purchase with cash on hand alongside debt and equity commitments, pending board and regulatory approval.
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