People Inc., formerly IAC, has withdrawn its offer to acquire the outstanding public shares of MGM Resorts International. The deal was valued at more than $18 billion and would have taken the casino operator private.
Barry Diller's company submitted the proposal on 1 June at $48.30 per share in cash for the stake it did not already own. A special committee of MGM's board negotiated for months before People decided not to proceed. Diller said "the right combination did not come together." MGM shares dropped 8% in after-hours trading following the announcement, Reuters reported.
People retains its 27% stake — 66.8 million MGM shares — and remains open to other strategic options. The company began building the position in 2020 when MGM's stock fell during lockdowns. For Diller it was a chance to diversify beyond media assets like People and Food & Wine; he had earlier worked in leisure through Expedia, which IAC bought in 2002 and later spun off.
MGM Resorts controls around 40% of the Las Vegas Strip, holds assets in China through MGM China, is preparing the MGM Osaka project in Japan and operates in digital through BetMGM. Board chairman Paul Salem said the company will continue as an independent entity: "Our leadership in Las Vegas, regional properties and BetMGM growth give shareholders a clear path to value creation."
The withdrawal closes the current attempt to take MGM private but does not rule out future scenarios for People's involvement.
