Diller drops bid to acquire MGM Resorts

MGM Resorts International will remain a standalone company after Barry Diller’s People Incorporated withdrew its bid to acquire the Las Vegas‑based casino operator, ending several months of negotiations between the two parties. The Wall Street Journal first reported on Wednesday that Diller was pulling his offer. MGM subsequently confirmed that People had withdrawn its June 1 proposal to purchase all outstanding MGM shares it did not already own. People had offered $48.30 per share in cash for the remaining stakes. MGM’s board formed a special committee of independent directors to evaluate the proposal, and that committee engaged in negotiations with People over the past several months. People, formerly known as IAC, already holds roughly 27 percent of MGM. Diller said on Wednesday that People continues to hold its 66.8 million MGM shares and remains confident in MGM’s performance and prospects. MGM Chairman Paul Salem stated that the committee is committed to executing the company’s strategy as a standalone business. “Our leading position in Las Vegas, our best‑in‑class destination properties, and BetMGM’s continued momentum highlight the value we bring to our shareholders,” Salem said in a statement Wednesday afternoon. “In addition, our global portfolio of MGM China and the significant opportunity with the MGM Osaka project provide a clear path to expanding shareholder value.” Diller’s withdrawal follows a notable shift in casino ownership dynamics. On Tuesday, Caesars Entertainment Inc. shareholders approved Tilman Fertitta’s projected $17.6 billion acquisition of the casino operator, clearing a major shareholder hurdle for the transaction. Approximately 65.4 percent of Caesars’ outstanding shares voted in favor of the deal, according to a regulatory filing. Fertitta’s agreement remains subject to regulatory approval and would take Caesars private. For MGM, the immediate focus centers on Diller’s ongoing role as a major shareholder and the company’s relationship with its largest individual investor. People’s original argument contended that MGM’s assets and businesses were not fully reflected in its public‑market valuation and that taking the company private could close that gap. MGM, meanwhile, has emphasized its standalone strategy and the potential for growth across its Las Vegas, regional, digital and global operations. Neither side disclosed specific reasons on Wednesday for why the talks failed to produce an agreement. According to the Wall Street Journal, 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.”