Barry Diller’s People Inc. has submitted a nonbinding proposal to acquire the remaining stake in MGM Resorts it does not already own, in a deal that would value the casino company at $18 billion and take it private.
According to Reuters, People Inc. — the company formerly called IAC, which completed its rebranding in April — holds a 26.1% stake in MGM
At $48.30 per share in cash, the proposed price would exceed MGM’s Friday close by about 10.6% and sit roughly 30% above its volume-weighted average price for the preceding 90-day period, The New York Times reported. Premarket trading on Monday saw MGM shares climb over 10%, with People Inc. shares also ticking up by nearly 3%, Reuters noted. Barry Diller sits on MGM’s board and would recuse himself from any board vote on a potential deal, according to CNBC.
The proposal has not yet been finalized and could be delayed or scrapped, according to the Times. His investment in MGM traces back to the height of the COVID-19 pandemic, a period when casino shutdowns and restrictions on travel drove down the company’s share price, according to Reuters. In an April 28 letter to shareholders, he called MGM stock “wildly undervalued” and said People Inc. would sharpen its focus on the stake, according to Reuters.