People Inc Proposes $18B Take-private Offer for MGM at $48.30 Per Share
MGM•Barry Diller’s People Inc. proposed acquiring the remaining 73.9% of MGM for $48.30 per share in cash, valuing the company at $18 billion and offering a 10.6% premium to its last close and 30% above its 90-day VWAP. MGM shares climbed over 10% in premarket trading following the proposal.
1. Takeover Proposal Details
People Inc has submitted a nonbinding offer to acquire the remaining 73.9% of MGM it does not already own for $48.30 per share in cash, valuing the company at approximately $18 billion. The proposed price represents a 10.6% premium to the last closing price and sits about 30% above its 90-day volume-weighted average price.
2. Shareholder Impact and Trading Response
People Inc currently holds a 26.1% stake in MGM, and news of the proposal drove MGM shares up more than 10% in premarket trading. People Inc stock also ticked higher by nearly 3%, reflecting investor optimism about the potential transaction.
3. Governance and Approval Outlook
Barry Diller, who sits on MGM’s board, will recuse himself from any vote on the proposed deal to maintain governance integrity. The nonbinding proposal remains subject to due diligence, board approval and potential regulatory review, and could be delayed or withdrawn.
4. Industry Context
MGM owns properties accounting for roughly 40% of the Las Vegas Strip and has diversified into digital gaming through BetMGM. The bid follows other major consolidation moves in the casino sector, including a $17.6 billion deal involving Caesars Entertainment.
