Barry Diller Withdraws $18 Billion Bid to Take MGM Resorts Private

LAS VEGAS – Barry Diller’s People Incorporated has withdrawn its proposal to acquire the remaining shares of MGM Resorts International. MGM will remain a standalone public company after several months of negotiations over a deal valued at more than $18 billion.

The withdrawal came a day after Caesars Entertainment shareholders approved Tilman Fertitta’s separate $17.6 billion acquisition of Caesars. The contrasting developments leave one proposed Las Vegas casino privatization advancing toward regulatory review while the other has ended for now.

People submitted its MGM proposal on June 1, offering $48.30 in cash for each share it did not already own. The company held 26.1% of MGM when the $18 billion takeover offer was announced and has since increased its position to approximately 27%.

People Ends MGM Privatization Effort

People Chairman and Senior Executive Barry Diller said the company had decided not to continue pursuing the transaction after determining that the elements required to complete the deal were not coming together as expected. People disclosed the withdrawal on Sept. 23.

“There are lots of ingredients that go into a proposal of this kind on its way to completion. We didn’t feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time,” Diller said.

People continues to own 66.8 million MGM shares, representing approximately 27% of the casino operator. Diller said the company’s confidence in MGM’s management and prospects remained unchanged, leaving open the possibility of another strategic transaction in the future.

The proposed transaction would have acquired MGM shares not already owned by People and taken the casino group private. People, formerly known as IAC, began investing in MGM in 2020 as the casino industry faced closures and travel restrictions during the COVID-19 pandemic.

MGM Resorts Will Continue as Standalone Company

MGM confirmed the withdrawal in an official statement, saying a special committee of its board had negotiated with People over the proposal during the past several months. The company said it will now continue operating independently.

“The Board remains excited to continue to lead MGM Resorts as a standalone company,” MGM Resorts Chairman Paul Salem said. He pointed to the company’s Las Vegas and regional casino operations, BetMGM, MGM China and the MGM Osaka development as components of its strategy.

MGM operates a large portfolio of Las Vegas Strip resorts, including Bellagio, Aria, MGM Grand, Mandalay Bay, Park MGM, Luxor, Excalibur and New York-New York. It also operates The Cosmopolitan of Las Vegas and has businesses outside Nevada, including its MGM China subsidiary and digital operations.

Caesars Deal Moves in Opposite Direction

The withdrawal creates a different outcome from the two proposed casino takeovers that were expected to potentially reshape ownership on the Las Vegas Strip. Caesars shareholders voted this week to approve Fertitta Entertainment’s $17.6 billion acquisition, although that transaction still requires regulatory approvals and other closing conditions.

MGM shares fell 8% in extended trading after People announced the withdrawal, according to Reuters. For MGM employees and operations, however, the immediate corporate structure remains unchanged because no acquisition will proceed under the June proposal.

People has not indicated that it plans to sell its MGM stake. Diller said the company remains interested in considering potential strategic alternatives involving MGM, meaning the Sept. 23 withdrawal ends the current takeover proposal rather than its investment in the casino operator.

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