A takeover offer was submitted to MGM Resorts International on Monday by Barry Diller’s firm, People Inc., valuing the casino operator at more than 18 billion dollars. The corporate proposal arrived only days after another major hospitality acquisition in the United States gaming sector, indicating a wave of consolidation across the domestic casino industry.
People Inc., which was previously known as IAC, announced it made an offer of 48.30 dollars per share in cash for the shares of MGM Resorts that it does not currently own. The proposal marks a premium of roughly 10.6 percent over the closing price of the stock on the preceding Friday. The investment firm already possesses a 26.1 percent stake in MGM Resorts and noted that this transaction would result in it controlling 50.1 percent of the equity of the casino operator. Other current investors would retain minority holdings under the proposal.
The targeted casino operator confirmed that it received the proposal on Monday. Representatives stated that the board of directors will collaborate with financial and legal advisers to evaluate the offer before deciding on the next corporate steps for MGM Resorts. The transaction arrives amidst heightened merger activity. Last week, hospitality billionaire Tilman Fertitta agreed to a 17.6 billion dollar acquisition of Caesars Entertainment, leading market analysts to predict that additional consolidation would ripple through the industry.
Diller has maintained an interest in MGM Resorts since the pandemic, when his firm began purchasing shares as casino stocks dropped due to travel restrictions. The executive has frequently stated that the hospitality giant is undervalued despite holding iconic real estate assets. The corporate portfolio includes major properties that represent roughly 40 percent of the Las Vegas Strip, consisting of roughly 37,000 hotel rooms and numerous gaming machines.
The firm also holds digital assets, including its online sports betting joint venture, BetMGM. Analysts have pointed to this digital gambling segment as a driver of future growth. For Diller, the acquisition of MGM Resorts would mark a major expansion into the casino and hospitality sector, following past investments in internet and travel brands. The proposal is currently awaiting review by the board, which has not yet detailed whether it will negotiate or seek alternative bids for MGM Resorts.