People Inc., the holding company controlled by billionaire Barry Diller, submitted a nonbinding proposal Monday to acquire all outstanding shares of MGM Resorts International at $48.30 per share in cash. The offer values MGM’s equity at approximately $12.4 billion and the entire company at roughly $18 billion including debt, according to a letter Diller sent to MGM’s board of directors.
People Inc., which was formerly known as IAC, already owns 26.1% of MGM Resorts, a stake currently worth about $2.9 billion according to FactSet. If the board accepts the proposal, MGM would become a private company controlled by People Inc., which would hold just over 50.1% of MGM’s equity.
“We believe that MGM’s assets and businesses are not currently realizing their full potential in the public markets and that it will be difficult to correct this situation in MGM’s current form as a public company,” Diller wrote in the letter to the board.
Diller said People Inc. 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.” He told the board that the roughly 40% of the Las Vegas Strip that MGM owns represents “an entertainment nucleus” that cannot be recreated anywhere else.
Diller said he expects to fund the transaction with a combination of cash on hand at both People Inc. and MGM, along with additional debt and equity funding commitments. He said he is confident in his company’s ability to finance the deal based on existing cash and “preliminary conversations” with potential equity investors and financing sources.
The proposal comes as MGM’s stock has risen nearly 38% over the past year. The company’s recent revenue growth has been driven by performance in China and regional operations outside Las Vegas. In the first quarter, People Inc. reported a $34 million unrealized gain on its MGM investment, compared with a $324.3 million unrealized loss in the prior-year period.
The Las Vegas Strip has struggled in recent months following a postpandemic boom, with higher minimum table bets and elevated prices for food and drinks contributing to dampened visitor interest alongside broader economic uncertainty. Casinos also face growing competition from online sports betting platforms such as DraftKings and FanDuel, which have gained legal standing in more states, as well as prediction markets including Kalshi and Polymarket that operate outside state gambling regulatory frameworks.