Barry Diller’s People Inc. has decided to pull its proposal to acquire the remaining shares of MGM Resorts International, thus putting an end to months of discussions over a potential deal that would have valued the Las Vegas-based casino company at more than $18 billion.
“We Didn’t Feel the Mix Was Coming Together”
People, which already owns about 27% of MGM Resorts, made its original proposal a few months ago, in June 2026. The offer valued the shares it did not already own at $48.30 each and would have taken MGM private.
Diller, People’s chairman and senior executive, said the decision followed discussions over the various elements needed to complete such a transaction.
“There are lots of ingredients that go into a proposal of this kind on its way to completion,” Diller said in a statement.
“We didn’t feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time.”
“Our Belief in the Future of MGM Resorts, Undimmed”
However, Diller said the withdrawal did not change People’s view of MGM’s longer-term prospects.
“What is undimmed is our belief in the future of MGM Resorts,” he said.
People confirmed that it continues to hold 66.8 million MGM shares, representing approximately 27% of the company.
MGM shares fell sharply in after-hours trading following the announcement, dropping $3.24, or 8.57%, to $34.61. The company is listed on the New York Stock Exchange.
Diller also left the door open to further discussions, saying People remains interested in a possible strategic transaction with MGM and will consider a range of alternatives.
MGM confirmed that People had withdrawn its June 1 proposal after a special committee of MGM’s board had taken part in negotiations.
Paul Salem, chairman of MGM’s board, said the company remains focused on operating as a standalone business.
Important Global Projects, Underway
The casino operator is also moving ahead with several major international projects. MGM Osaka, a planned $10 billion integrated resort on Yumeshima island in Osaka Bay, is under construction and is scheduled to open by the end of 2030.
The location is expected to become Japan’s first integrated resort.
MGM is also developing a $2.5 billion resort project in Dubai on a manmade island near the Burj Al Arab. The project is scheduled to open in the third quarter of 2028.
MGM chief executive officer Bill Hornbuckle said earlier this month that the company was still awaiting approval of a UAE gaming license, but remained confident it would be granted.
For now, the proposed takeover is off the table, while People continues to hold its sizable MGM stake and MGM moves forward with its existing strategy and development plans.