MGM Resorts International (NYSE:MGM) has received a non-binding, all-cash takeover proposal from American billionaire and media mogul Barry Diller’s People Inc, formerly IAC, (NASDAQ: IAC) to acquire the 73.9% of the company it does not already own at $48.30 per share.
People Inc said the offer implies an equity value of approximately $18 billion for the remaining stake and represents a 24.1% premium to MGM’s 30-day volume-weighted average price through May 29, 2026, as well as a 10.6% premium to the latest closing price
Shares of MGM jumped 15% on the bid to about $50, while IAC stock was little changed at about $45. The company already owns a 26.1% stake in MGM and said it would fund the transaction using a combination of existing cash, MGM’s balance sheet, and additional debt and equity financing commitments. Under the proposed structure, People Inc would hold just over 50.1% of MGM post-transaction, with other investors, including potentially existing MGM shareholders, holding minority stakes while People Inc maintains control.
Diller, People Inc CEO, said the investment thesis is based on MGM’s physical asset base and digital growth potential, describing the business as one that is difficult to replicate and “undervalued by the market.” He also said the proposal would give shareholders an opportunity to de-risk through an immediate cash exit, and expressed confidence in engaging with MGM’s board. MGM confirmed receipt of the proposal and said its board will review the offer in consultation with financial and legal advisers. The company said shareholders do not need to take any action at this time and cautioned that there is no assurance the proposal will lead to a transaction.