People Incorporated, the US media conglomerate owned by businessman Barry Diller and previously known as IAC, has submitted a non-binding proposal to acquire all outstanding shares of MGM Resorts International that it does not already own in a deal that would value the casino operator at around US$18 billion.
People Inc currently owns 26.1% of MGM’s common stock.
According to information released by the company overnight, the offer of US$48.30 per share in cash represents a premium of 24.1% to the volume-weighted average price of MGM common stock for the 30 trading days ending on 29 May 2026 and a 10.6% premium to the most recent closing price.
It comes just days after Fertitta Entertainment reached an agreement to buy another Las Vegas icon, Caesars Entertainment, for US$17.6 billion.
MGM this morning confirmed receipt of the offer and said it would, in consultation with its financial and legal advisors, “carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the company and all of its shareholders.”
It added, “The company cannot provide assurances that such proposal or any subsequent proposal will result in an agreement or a transaction being reached or, if so, as to the timing, price or other terms and conditions of any such agreement. The company remains focused on advancing its position as the world’s premier gaming entertainment company.”
Diller, People Inc’s Chairman and Senior Executive, stated in announcing the offer, “We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities. That conviction has only strengthened over time.
“We continue to believe the market materially undervalues the power and durability of MGM’s assets. We believe MGM’s management team is superb and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.
“I believe this transaction would deliver significant benefits to the shareholders of both companies. MGM shareholders would be given the opportunity to de-risk their investment and realize immediate, attractive value in cash for their shares. We are confident in our ability to execute on a transaction promptly with engagement from the MGM Board of Directors.”
People Inc added that, should the offer be accepted, it would own just over 50.1% of the equity of the company, with other investors – which may include existing shareholders of MGM – holding minority interests. People Incorporated would control the MGM business, it said, and MGM would become a private company.
In a note, J.P. Morgan’s Daniel Politzer, Samuel Nielson and Michael Hirsch said they are encouraged that longer duration investors are stepping up to capitalize on US Gaming firms’ attractive intrinsic cash flow generation” but suggested the US$48.30 offer may only be a starting point for negotiations as it “likely gives minimal valuation credit for longer-duration value drivers” such as MGM’s US$10 billion IR project in Osaka, Japan or the growth of its digital business. As such, and taking into account the recent acquisition of Caesars by Fertitta Entertainment, a deal closer to US$55 per share may be more appropriate.
Barry Jonas from Truist Securities observed that Diller and IAC have been an active shareholder and board member for many years now, which he said, “makes us wonder whether this bid has to do with changing anything fundamental or just taking advantage of valuation dislocation.”
As part of IAC, MGM “could potentially operate better under less short-term focused investor scrutiny. Still, we wonder how potentially less transparency and more limited disclosures would be viewed overall.”
Nevertheless, Jonas said it viewed the announcement with “cautious optimism” for IAC as it would bring one of its core assets in MGM fully under the People Inc umbrella and could lead to a meaningful value unlock.
“Net-net, depending on the final price and structure of the deal, this could be a positive transaction that unlocks value across both segments for People Inc,” Jonas wrote.
“We believe Mr Diller’s track record in creating shareholder value through unorthodox M&A should give investors some confidence in the move if it were to go through.”
MGM’s assets include a 56% stake in Macau-based MGM China Holdings.
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