Barry Diller’s People Inc. Withdraws Bid to Take MGM Resorts Private

People Inc., the media company controlled by Barry Diller, has withdrawn its proposal to acquire the outstanding shares of MGM Resorts International. The proposal, submitted in June, aimed to buy the remaining 24.1% of MGM's shares at $48.30 per share, which would have given People Inc. a majority stake of 50.1% and valued the company at roughly $18 billion. Negotiations with a special committee of MGM's board had continued for months before People decided to stop pursuing the transaction.

• Offer details: In June, People Inc. offered $48.30 in cash for each MGM share it did not own. That price and the shares covered would have put a total valuation near $18 billion.
• Ownership context: Before withdrawing the bid, People Inc. already owned about 66.8 million MGM shares, which represented approximately a 27% stake in the company.

Barry Diller said the mix of elements needed to complete a transaction "wasn't coming together in the way we had hoped," and People Inc. decided not to pursue taking MGM private at this time. Diller also stated that his belief in MGM's future is "undimmed," and he expressed "total confidence" in MGM's management and prospects. People Inc. said it remains "open to and interested in the possibility of a strategic transaction" and will consider a range of alternatives going forward.

MGM confirmed receipt of the withdrawal and said the board "remains excited to continue to lead MGM Resorts as a standalone company." Board Chairman Paul Salem pointed to MGM's position in Las Vegas, its regional properties, BetMGM's momentum, its international portfolio including MGM China, and the opportunity presented by MGM Osaka as reasons the company can increase shareholder value without a sale.

Negotiations had proceeded for months with a special committee appointed by MGM's board. Diller thanked the special committee and the MGM directors for their time and consideration during the process. The decision to withdraw followed the committee-led talks and an apparent assessment by People Inc. that the elements required to finalize a deal were not aligning.

Market reaction and immediate effects

News of the withdrawal was first reported by The Wall Street Journal and was quickly picked up by other outlets. MGM Resorts shares fell about 8% in after-hours trading when the withdrawal became public. The move ends the active pursuit of a takeover by People Inc. but leaves open the possibility of future strategic talks since People retains its significant minority stake.