Barry Diller is making a dramatic pivot into bricks-and-mortar gambling. His media company People Inc announced Monday that it has proposed acquiring MGM Resorts for more than $18 billion, offering $48.30 per share in cash to buy out the roughly 74% of the company it does not already own.
The bid represents a roughly 10.6% premium over MGM's Friday closing price and arrives just weeks after Diller told shareholders he planned to deepen People's commitment to the casino operator, describing MGM stock as wildly undervalued. People currently controls 26.1% of MGM's shares.
Wall Street took the news as a positive signal. MGM shares jumped more than 10% in premarket trading, while People stock rose nearly 3%. MGM has not publicly commented on the proposal.
Diller began building his stake in MGM during the pandemic when the casino operator's stock cratered amid closures and travel restrictions. He has maintained that position even as the company recovered.
MGM owns some of Las Vegas's most valuable properties, controlling roughly 40% of the Strip's total capacity. But the company has struggled with weak domestic foot traffic and has increasingly relied on its international operations, particularly in Macau, along with digital ventures. Its BetMGM online sportsbook has emerged as a major player in the U.S. sports betting market, which analysts view as a long-term growth engine.
The takeover approach marks a sharp strategic shift for Diller, whose career has been rooted in media and digital ventures. A full MGM acquisition would give his company substantial exposure to travel and tourism at a moment when financial markets remain turbulent.
The bid also comes amid a flurry of major casino sector deals. Just last week, billionaire Tilman Fertitta announced plans to acquire Caesars Entertainment for $17.6 billion, signaling renewed appetite for consolidation in the gaming industry.
Author James Rodriguez: "Diller's move is a calculated bet that MGM's assets are worth more than the market is pricing them, and his track record suggests he may be right about the timing."
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