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State of Play’s TL;DR
- Barry Diller’s People Inc. has withdrawn its $18 billion bid to take MGM Resorts private.
- That sent MGM shares lower in after-hours trading.
Barry Diller’s People Inc. has withdrawn its $18 billion offer to take MGM Resorts International private. The move sent MGM shares sharply lower in after-hours trading and leaves open only the possibility of some future “strategic transaction.”
MGM Resorts is one of the biggest names in US gaming, so any major deal involving the company tends to ripple across the broader casino sector. This one now shifts from takeover talk to uncertainty about whether any smaller or alternative transaction could still emerge.
People Inc. walks away from MGM takeover proposal
People Inc. said it will no longer pursue its bid to acquire MGM Resorts in a go-private deal. The company had floated the offer on June 1, valuing MGM at about $18 billion, with a proposed price of $48.30 per share.
People Inc. owns 26.1% of MGM shares.
Barry Diller said the proposal ultimately became too difficult to complete.
“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 (MGM) private at this time.”
MGM stock drops as takeover premium disappears
The market reaction was immediate. At the time of the report, MGM shares were down 8.11% in after-hours trading to about $34.80.
The article noted that, if the stock were to close around that level, it would mark MGM’s lowest closing price in six months. It also said MGM shares had already slipped nearly 14% over the past month, with a prior closing price of $37.85 mentioned in the report.
Diller still leaves the door open to a different deal
Even with the full takeover bid off the table, Diller said he remains “open to and interested in” a “strategic transaction” involving MGM.
What that might look like was not detailed in the source report, and it also said it is unclear whether MGM would be open to such a move.
For now, the confirmed development is narrower but important: a high-profile bid for one of the largest US casino operators has been pulled, MGM stock has taken a hit, and any next step appears uncertain rather than imminent.
Based on reporting by Todd Shriber for Casino.org.
