Key facts
- MGM Resorts International is reportedly discussing a bid to acquire Barry Diller's People Inc.
- People Inc. withdrew its $18 billion proposal to buy MGM Resorts.
- MGM Resorts shares fell 9% on Thursday following the withdrawal of the bid.
- People Inc. already owns 27% of MGM Resorts.
- The withdrawn offer from People Inc. was for $48.30 per share.
MGM Resorts International is reportedly discussing a bid to acquire Barry Diller’s People Inc., a day after People Inc. withdrew its own proposal to buy MGM Resorts. If MGM proceeds with a counter-offer, it could make its proposal in the coming days, according to the Wall Street Journal, citing people familiar with the matter.
Barry Diller's People Inc. had previously withdrawn its more than $18 billion proposal to acquire MGM Resorts, causing the casino operator's shares to slide 9% on Thursday. The withdrawal followed months of discussions, with Diller stating that "we didn't feel the mix was coming together in the way we had hoped." People Inc., which already holds a 27% stake in MGM Resorts, had offered $48.30 per share for the remaining shares in June. This offer had previously driven MGM's stock to an 18-year high. The deal would have allowed Diller's group, known for media brands like People magazine and Travel + Leisure, to expand beyond its traditional media operations. Analysts at Truist Securities had previously suggested that MGM Resorts might operate better under less short-term investor scrutiny as part of People Inc.