People Inc. has withdrawn its bid to take MGM Resorts International private. Barry Diller's company pulled the offer after months of talks with MGM's special board committee.
People tabled a non-binding proposal on 1 June at $48.30 per share for the MGM stock it did not already own, valuing the operator above $18 billion including debt. Diller said the mix "wasn't coming together the way we'd hoped." People retains its 66.8 million MGM shares — roughly 27% of the company — and remains open to strategic deals with the operator.
MGM board chair Paul Salem said management is committed to moving forward as an independent company. He pointed to the Las Vegas and regional US properties, the BetMGM sportsbook platform, the MGM China stake and the MGM Osaka project as growth drivers for shareholders.
Analysts had suggested a successful take-private could have led MGM to sell its MGM China holding or exit the Osaka development. People's withdrawal removes that risk to the operator's Asian assets.
