Media holding People Incorporated has withdrawn its $18bn bid for MGM Resorts International. Barry Diller's company holds a 27% stake in the operator and will retain that position after walking away from the deal. A special committee of MGM's board negotiated for several months, but the parties did not reach agreement.
MGM Resorts runs casinos in China and Japan through MGM China and MGM Osaka. After the federal PASPA ban was lifted in 2018, the company launched online sportsbook BetMGM — a 50/50 joint venture with British operator Entain for the US market. In 2022 MGM bought Swedish online operator LeoVegas for $607m and used its platform to take BetMGM outside the United States. The international BetMGM business is wholly owned by MGM, without Entain participation.
BetMGM operates in the UK, Netherlands, Brazil and Sweden. According to Blask Index, the brand ranks 23rd, 14th, 34th and 23rd by online traffic in those countries respectively. MGM board chair Paul Salem said the company will continue developing independently, relying on its Las Vegas positions, regional assets and BetMGM growth.
Had the deal closed, it would have been a rare case of a larger company acquired by a smaller one: People Incorporated's market cap stood at $2.68bn against MGM's $9.5bn. The failed acquisition also removes questions about Entain's future — MGM attempted to buy its partner in 2021 for $11bn but was turned down. MGM shares closed on the NYSE at $37.85; Entain trades at £45.
