People Incorporated, the largest U.S. publishing group, has withdrawn its proposal to acquire all public shares of MGM Resorts International. The company retains its stake of 66.8 million shares — roughly 27% of the operator.
People Inc. Chairman Barry Diller said the deal's ingredients "didn't come together as we had hoped" but stressed confidence in MGM Resorts and its management. The publisher posted its eleventh consecutive quarter of growth and has cash on hand for investment and share buybacks. Diller added that the company remains open to a strategic transaction with MGM down the line.
MGM Resorts Board Chair Paul Salem said the operator will continue as an independent player. He cited the asset base: leading positions in Las Vegas, regional casinos, growing sportsbook venture BetMGM, plus MGM China and the upcoming MGM Osaka. Salem sees "a clear path to value creation for shareholders."
The abandoned bid leaves MGM Resorts public with room to manoeuvre. For the betting segment it means BetMGM's strategy stays under current management without interference from a new majority owner. People Inc. at 27% still carries influence but no unilateral control.
