MGM Resorts International will remain a standalone company after Barry Diller’s People Incorporated withdrew its proposal to acquire the Las Vegas-based casino operator, ending several months of negotiations between the two sides.
The Wall Street Journal first reported Wednesday that Diller was pulling his bid. MGM subsequently confirmed that People had withdrawn its June 1 proposal to acquire all outstanding MGM shares it did not already own.
People had offered $48.30 per share in cash for the remaining shares. MGM’s board formed a special committee of independent directors to evaluate the proposal, and the committee participated in negotiations with People over the past several months.
People, formerly known as IAC, already owns about 27 percent of MGM. Diller said Wednesday that People continues to hold its 66.8 million MGM shares and that the company remains confident in MGM’s management and prospects.
MGM Chairman Paul Salem said the board remains committed to executing the company’s strategy as a standalone business.
“Our leading position in Las Vegas, our best-in-class regional properties, and BetMGM’s continued momentum highlight the value we bring to our shareholders,” Salem said in a statement Wednesday afternoon. “In addition, our international portfolio of MGM China and the significant opportunity ahead with MGM Osaka support a clear path to increasing shareholder value.”
Diller’s withdrawal comes on the heels of a seismic shift in casino ownership.
On Tuesday, Caesars Entertainment Inc. shareholders approved Tilman Fertitta’s proposed $17.6 billion acquisition of the casino operator, clearing a major shareholder hurdle for the transaction. About 65.4 percent of Caesars’ outstanding shares voted in favor of the deal, according to a regulatory filing.
Fertitta’s deal, which is still subject to regulatory approval, will take Caesars private.
For MGM, the immediate questions now center on Diller’s continuing role as a major shareholder and the company’s relationship with its largest individual investor. People’s original proposal argued that MGM’s assets and businesses were not fully reflected in its public-market valuation and that taking the company private could address that gap.
MGM, meanwhile, has emphasized its standalone strategy and the potential for growth across its Las Vegas, regional, digital and international businesses.
Neither company disclosed specific reasons Wednesday for why the negotiations failed to produce an agreement. According to the WSJ, Diller said only that the “mix” of factors needed to complete the transaction was not coming together as hoped and that People was not pursuing the deal “at this time.”
Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
