People Inc. has submitted a proposal to acquire MGM Resorts International for more than $18 billion, according to multiple news reports.
Barry Diller, Chairman and Senior Executive of People, submitted the proposal in a letter dated June 1. If the transaction moves forward, People expects to increase its ownership stake to just over 50.1 percent while retaining MGM’s existing management team.
MGM Resorts confirmed Monday that it had received the proposal from People Inc., which already owns a stake in the gaming and hospitality company. According to news reports, the offer values MGM at $48.30 per share in cash and seeks to acquire all outstanding shares not already owned by People.
People Inc. publishes more than 40 media brands, including PEOPLE, Food & Wine and Travel + Leisure. The company began investing in MGM in 2020 and currently owns approximately 26.1 percent of MGM’s common stock.
In a statement released by People Inc., Diller said the company initially invested in MGM because it combined hard-to-replicate physical assets and long-term digital growth potential. He added that People continues to believe MGM’s assets are undervalued by the market and that the company sees opportunities to support MGM’s next phase of growth.
MGM Resorts operates 13 properties on the Las Vegas Strip, including Bellagio, MGM Grand and Mandalay Bay. The proposal comes amid broader consolidation activity in the gaming and hospitality industry. According to news reports, Fertitta Entertainment recently announced plans to acquire Caesars Entertainment in a transaction valued at approximately $17.6 billion.
MGM’s Response and Next Steps
According to Reuters, MGM said its board of directors, working alongside financial and legal advisors, will review the proposal and determine its next steps.
In a separate statement, MGM said it could not guarantee that the proposal would lead to a transaction or that any agreement would ultimately be reached. The company added that it remains focused on strengthening its position as a global gaming and entertainment leader.
The proposed acquisition would further expand Diller’s footprint in the travel and leisure sector. According to news outlets, Diller acquired Expedia in 2002, helping transform the company into one of the world’s largest online travel agencies before later spinning it off as an independent business. He continued to serve as chairman for several years.
