People Inc. Submits $18B Takeover Bid for MGM Resorts
Barry Diller
People Inc. submitted an $18 billion takeover bid for MGM Resorts on Monday, proposing to acquire the casino operator through a cash offer that values the company at $48.30 per share. The proposal represents a premium of approximately 10.6% over MGM’s closing share price on Friday. Barry Diller’s company currently owns a 26.1% stake in MGM Resorts and stated the transaction would result in People controlling just over 50.1% of the casino operator’s equity. Notably, MGM remains one of the largest gaming operators in the United States, with marquee properties that account for roughly 40% of the Las Vegas Strip. .
People Inc. Offers $48.30 Per Share for MGM Resorts
The all-cash proposal targets the 73.9% of MGM Resorts currently held by public shareholders, with the goal of taking the company private. Beyond the 10.6% premium over Friday’s closing price of $43.67, the offer represents a 24.1% premium over the 30-day volume-weighted average price ending May 29, 2026, and more than 30% premium over the stock’s 90-day volume-weighted average price ending on the same date.
Barry Diller articulated his investment thesis in a letter to MGM’s Board of Directors. “We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real-world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities,” Diller stated. He added that the market materially undervalues the power and durability of MGM’s assets.
People Inc. plans to fund the buyout through a combination of existing cash on hand at both companies, along with additional debt and equity funding commitments. The transaction carries no financing conditions. Upon completion, other investors would hold the remaining minority interests, potentially including existing MGM shareholders.
MGM’s current management team is expected to continue leading the business. Diller, who holds a seat on MGM’s Board of Directors, confirmed he will recuse himself from any board deliberations or votes regarding the transaction. Shares of MGM surged 14.5% to $50.00, trading above the offer price.
How Industry Consolidation Drives the Acquisition
Casino operators face mounting pressure to consolidate as market valuations lag behind operational performance. Tilman Fertitta’s Fertitta Entertainment entered exclusive negotiations in mid-March to acquire Caesars Entertainment for $32.00 per share, representing an equity value of $6.50 billion and enterprise value of $31.50 billion. Sources close to the situation cite “the math is just too good to ignore,” pointing to Caesars’ suppressed share price despite generating $1.00 billion in annual free cash flow and $4.00 billion in EBITDA.
The gaming sector recorded 88 M&A transactions in 2024, more than doubling the previous year’s total. This acceleration follows a pattern established during the pandemic recovery. For instance, Eldorado Resorts merged with Caesars Entertainment in 2020 through a $17.30 billion deal, creating one of the world’s largest casino companies. Similarly, Caesars acquired William Hill’s U.S. assets for $4.00 billion in 2021, then sold the non-U.S. operations to 888 Holdings for £2.2 billion to focus exclusively on American digital and sports betting markets.
People Inc.’s bid reflects this broader trend toward consolidation driven by undervalued public market positions and opportunities to extract value through private ownership structures.
What Happens Next for MGM Resorts
MGM Resorts confirmed receipt of the proposal and stated its Board of Directors will carefully review and consider the offer in consultation with financial and legal advisors to determine the course of action in the best interests of the company and all shareholders. Shareholders do not need to take any action at this time. The company cannot provide assurances that the proposal will result in an agreement or transaction, nor can it specify timing, price, or other terms if such an agreement materializes.
However, MGM faces operational headwinds alongside digital opportunities. The casino operator has struggled with sluggish footfalls in Las Vegas and relied on growth in its China assets, including Macau, and digital operations in recent quarters. BetMGM has emerged as one of the leading U.S. online sportsbooks, giving higher exposure to a digital gambling market that analysts remain bullish on.
BetMGM reported Q1 2026 net revenue of $696 million, up 6% year-over-year, with adjusted EBITDA of $25 million, up 11%. The company maintains FY 2026 adjusted EBITDA guidance between $300 million and $350 million, albeit toward the lower end of the range, while net revenue expectations shifted to $2.90 billion to $3.10 billion. BetMGM remains on its pathway to delivering $500 million of adjusted EBITDA in FY 2027.
