People Inc, the digital media company recently renamed from IAC, announced Monday it has proposed to acquire the remaining shares of MGM Resorts International, valuing the casino operator at more than $18 billion. The company, chaired by media mogul Barry Diller, said it plans to bid $48.30 per share in cash for the roughly 74% of MGM it does not already own — a premium of about 10.6% over MGM’s closing price of $43.67 on Friday.
The proposal arrives just weeks after Diller told People Inc shareholders in an April 28 letter that the company would sharpen its focus on its MGM stake, calling the stock “wildly undervalued.” MGM shares rose more than 10% in premarket trading on Monday, while People Inc shares rose nearly 3%.
MGM Resorts did not immediately respond to a request for comment.
Diller’s interest in the casino operator dates back to the Covid-19 pandemic, when he began accumulating shares as MGM’s stock price was battered by resort closures and travel restrictions. People Inc now holds 26.1% of MGM’s outstanding common stock, according to the company’s announcement.
MGM Resorts owns marquee properties that account for roughly 40% of the Las Vegas Strip, including the MGM Grand, Excalibur, and New York-New York casinos. However, the company has struggled with sluggish foot traffic in Las Vegas in recent quarters and has relied on growth in its China properties, including its Macau operations, as well as its digital business, to offset the domestic softness.
The company’s BetMGM venture has emerged as one of the leading online sportsbooks in the United States, giving the casino operator increased exposure to a digital gambling market that analysts have viewed favorably.
For Diller, the proposed acquisition represents a sharp departure from digital media, giving his group access to an industry centered on travel and tourism at a time when broader markets remain volatile. People Inc completed its rename from IAC in April as part of a broader effort to define its identity around its largest investment.
The offer also marks the second major takeover attempt in the casino industry in as many weeks. Hospitality billionaire Tilman Fertitta’s firm announced the acquisition of Caesars Entertainment in a $17.6 billion deal the previous week, signaling renewed consolidation pressure across the sector.