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People Inc. withdraws $18bn bid to take MGM Resorts private
Developed over time first seen 2 months ago
Barry Diller's media company People Inc. has withdrawn its proposal to acquire MGM Resorts International, ending a bid submitted in June to purchase all outstanding shares at $48.30 per share for approximately $18 billion. Diller stated that the conditions required for completing the transaction were not materialising as anticipated, though he maintained confidence in MGM's future prospects and management.
People Inc., which rebranded from IAC earlier this year, will retain its substantial 27% stake in MGM Resorts (66.8 million shares) and remains open to exploring alternative strategic transactions. MGM Resorts operates 30 casino and hotel properties globally and owns a 50% stake in BetMGM, a joint venture with UK gambling operator Entain. People Inc.'s publishing division is currently in its eleventh consecutive quarter of growth and holds over 40 media brands including People magazine, Food + Wine and Travel & Leisure.
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In short
- People Inc. abandons $18bn bid to take MGM Resorts private
- Company retains 27% stake; open to future strategic alternatives
- MGM remains independent with 30 global properties and growing BetMGM platform
How this story developed
- 2 months ago The proposal would have taken MGM private, a prospect now abandoned as MGM pursues integrated resort expansion in Japan.
- 2 months ago The failed $18 billion proposal sees People Inc. maintaining its 27% stake in MGM whilst remaining open to alternative strategic transactions.
- 2 months ago Barry Diller's People Inc. has abandoned its proposal to acquire MGM Resorts International at $48.30 per share after determining that the conditions necessary for completing the transaction would not materialise.
Full account
Barry Diller's People Inc. has abandoned its effort to acquire full control of casino and online gaming operator MGM Resorts, concluding that conditions necessary for the transaction to succeed were not materialising as anticipated. The media company, which previously held a substantial minority stake in the hospitality group, announced the reversal on Wednesday.
The proposal, formally tabled in June, would have seen People Inc. purchase all outstanding MGM shares it did not already own at a price of $48.30 per share, valuing the entire enterprise at approximately $18 billion. At the time of the bid's announcement, Diller had characterised MGM as a distinctive asset class—a business possessing tangible real-world properties that artificial intelligence could not readily displace or bypass, combined with substantial digital expansion potential.
In his statement withdrawing the offer, Diller suggested that multiple complex factors required alignment for such an acquisition to proceed successfully, and that this convergence had not occurred. He maintained his confidence in MGM's trajectory and management, emphasising that People Inc. had not relinquished faith in the company's prospects. People Inc. further indicated its willingness to explore other forms of strategic partnership with MGM, preserving the possibility of future collaboration.
MGM Resorts acknowledged the withdrawal and reaffirmed its commitment to operating as an independent public company. The company's chairman, Paul Salem, expressed enthusiasm about the board's direction as a standalone entity, highlighting its commanding market position in Las Vegas, its portfolio of premium regional properties, and the strong performance of BetMGM, in which it holds a 50% ownership stake through a joint venture with British gambling operator Entain.
People Inc., which renamed itself from the former IAC (InterActiveCorp) in mid-2025, operates a substantial publishing division—including the American title People magazine—that has demonstrated sustained growth momentum. Diller's career spans decades of dealmaking and investment strategy; he previously sought to acquire Paramount Pictures before Skydance secured control of the studio in 2025. His stewardship of IAC has encompassed ownership and investment positions across numerous digital and media enterprises.
MGM operates a global network of 30 hotel and casino destinations and is pursuing targeted expansion initiatives in Asia, particularly through an integrated resort development programme in Japan. The company's commercial scope encompasses gaming, hospitality, and digital wagering platforms, positioning it at the intersection of traditional brick-and-mortar gaming and rapidly expanding online betting markets.
Where outlets differ
From the full account, which is AI-written from the sources:
Source 1 emphasises MGM's operational footprint and assets (30 properties, BetMGM details, Asia expansion), whilst Source 2 focuses on Diller's broader dealmaking trajectory and Hollywood experience
Source 1 provides extensive corporate history of People Inc.'s portfolio strategy and evolution, whilst Source 2 offers limited background on the company's structure
Source 1 includes People Inc.'s own financial performance (11 consecutive quarters of growth, cash reserves), which Source 2 omits
Source 1 directly quotes MGM's management response via chairman Paul Salem, Source 2 does not include MGM's perspective
Source 2 emphasises Diller's interest in acquiring CNN and his prior attempts at Paramount and Fox; Source 1 does not highlight these elements
Source 1 stresses the original June rationale about AI-resistant assets; Source 2 emphasises Diller's view that MGM shares were undervalued
Explained simply
People Inc., the media group led by Barry Diller, is a major shareholder in MGM Resorts International, a company that runs casinos and hotels around the world. MGM also owns half of BetMGM, its online gambling and sports-betting business with UK-listed Entain, and is developing a resort in Japan.
The proposed deal would have taken MGM off the stock market, making People Inc. its sole owner rather than one of many shareholders. The bid mattered because it could have changed control of a large global gambling and hospitality company, while leaving People Inc. with a significant financial interest in MGM.
Coverage · 2 sources
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Originally published by Variety as “Barry Diller Drops Bid to Acquire MGM Resorts: ‘We Didn’t Feel the Mix Was Coming Together’”.