Diller Walks Away From $18bn MGM Buyout Bid
The biggest takeover story in casino ownership this year has come to a quiet halt. Barry Diller’s People Inc has pulled its $18 billion offer to buy the rest of MGM Resorts International, sending the operator’s shares sliding and leaving the future ownership of one of gaming’s biggest names unresolved for now.
What’s been released
MGM Resorts confirmed that an $18 billion takeover offer from its largest shareholder, Barry Diller’s People Inc, which was lodged in June, has been rescinded, with both sides expressing confidence in the operator’s ability to continue as a standalone company.
People Inc, which changed its name from IAC this spring, owns about 27% of MGM Resorts and had submitted a formal offer in June to acquire all outstanding shares of MGM that it did not already own for $48.30 per share in cash.
The bid valued MGM Resorts at around $18 billion.
MGM shares slid 11% to about $33.50, with the stock down nearly 25% over the last month as optimism around the deal faded.
Diller, however, made clear the door hasn’t been shut for good.
Diller noted that People Inc remains “open to” future discussions, saying there are lots of ingredients that go into a proposal of this kind on its way to completion, and that the mix wasn’t coming together as hoped for taking the company private at this time.
What’s changed
On MGM’s side, the board struck a confident tone about going it alone.
MGM Chairman Paul Salem said the board “remains excited” to continue MGM’s path as an independent company, pointing to its leading position in Las Vegas, its regional properties, and BetMGM’s continued momentum as evidence of the value it brings shareholders.
Despite withdrawing the bid, People continues to hold 66.8 million of MGM’s shares, representing a stake of approximately 27%.
Diller’s stated openness to a future strategic transaction, paired with People Inc’s existing ownership stake, keeps some form of renewed dialogue plausible, though nothing in current reporting specifies terms or timing.
The reversal wasn’t cost-free for MGM’s valuation either, with analysts adjusting their outlook once the takeover premium came off the table.
Where it fits
For UK players, the ownership question around MGM carries a specific relevance.
MGM Resorts operates 30 hotel and casino destinations globally and owns 50% of BetMGM, a sports betting and online gaming platform, in a joint venture with U.K. gambling operator Entain.
A change of control at MGM could, in theory, have ripple effects on that partnership and on BetMGM’s product roadmap, though with the bid withdrawn and MGM committed to standalone operation, that scenario is off the table for now.
The saga also lands against a busier backdrop of consolidation across the wider casino sector.
Earlier in the week, shareholders of Caesars Entertainment approved an offer from billionaire Tilman Fertitta to acquire the casino company for $17.6 billion, with Caesars shareholders set to receive $31 per share in cash.
That deal going through while MGM’s stayed on the table has kept attention on how the big US casino groups might reshape themselves, and by extension, how the platforms and brands feeding into UK-facing joint ventures like BetMGM could evolve. For now, MGM remains independent, Entain’s stake in BetMGM is unaffected, and Diller’s People Inc keeps its quarter-share seat at the table for whatever comes next.
Sources
- iGaming Business – Diller’s People Inc rescinds MGM takeover bid as operator commits to standalone strategy
- CNBC – MGM Resorts shares sink 11% after Barry Diller’s People Inc. rescinds takeover offer
- Variety – Barry Diller’s People Inc. Drops Bid to Acquire MGM Resorts
- Las Vegas Sun – Diller ends MGM Resorts takeover bid but stays ‘open’ to other deals
- Deadline – Barry Diller Drops Bid To Acquire Full Control Of MGM Resorts
