Barry Diller Withdraws $48.30-a-Share Bid for MGM Resorts
Barry Diller’s People Inc. has withdrawn its offer to acquire the rest of MGM Resorts International, ending a bid that had valued the outstanding shares at $48.30 apiece in cash. MGM confirmed the withdrawal Wednesday, according to the Las Vegas Review-Journal, which reported that the Wall Street Journal first broke news of the retreat.
People Inc., formerly known as IAC, submitted its proposal on June 1 to buy all MGM shares it did not already control. A special committee of independent MGM directors was formed to evaluate the offer and spent several months negotiating with Diller’s representatives before the talks collapsed.
People Inc. already holds roughly a quarter of MGM’s outstanding stock, a stake the Review-Journal put at about 27 percent and The Nevada Independent listed at 26 percent. The Nevada Independent reported the total value of the withdrawn offer at roughly $18 billion for the remaining shares Diller did not own. Diller’s company retains its 66.8 million MGM shares, and the Review-Journal reported that Diller said Wednesday People Inc. remains confident in MGM’s management and its prospects.
MGM Chairman Paul Salem’s Response
MGM Chairman Paul Salem said the board remains committed to running the company independently.
“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.
Salem also pointed to MGM China and the roughly $10 billion MGM Osaka development, which The Nevada Independent reported is under construction, as reasons the board sees a path to shareholder value without a sale.
MGM executives had been largely silent on the offer for months. The Nevada Independent reported that CEO Bill Hornbuckle declined to discuss the proposal during the company’s July earnings call, telling analysts he was confident the board would act in shareholders’ best interest.
Diller’s Stake and Timing
Diller, 84, has built his position in MGM steadily since 2020 and has no other gaming holdings, according to The Nevada Independent, which put his net worth at $5.7 billion citing Forbes. People Inc. is the operating arm of his IAC holding company, which owns more than 40 media properties.
The withdrawal lands just a day after Caesars Entertainment shareholders approved Tilman Fertitta’s $17.6 billion acquisition of that casino operator, a vote the Review-Journal reported passed with about 65.4 percent of outstanding shares in favor. MGM will now continue to operate as a standalone company on the Strip, in regional markets, and across its international portfolio in Macau and Japan.
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