Barry Diller’s publishing company People Inc. (NASDAQ: IAC) has submitted a surprise non-binding proposal to acquire MGM Resorts International (NYSE: MGM) in a $48.30 per share all-cash transaction that values the company at $18 billion.
People Inc., publishes over 40 prominent magazine brands including People, Food & Wine, Travel + Leisure, InStyle, Better Homes & Gardens, and Southern Living. MGM owns hotels, resorts and casinos across the US and in China, most notably the Bellagio and Mandalay Bay in Las Vegas.
People Inc. owns 26.1% of the outstanding common stock of MGM and would possess just over 50.1% of the equity of the company if the transaction is approved, thus giving it control of the hospitality and gaming company’s operations.
“We 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. That conviction has only strengthened over time,” said Barry Diller, chairman and senior executive at People Inc. “We continue to believe the market materially undervalues the power and durability of MGM’s assets. We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”
Diller added, “I believe this transaction would deliver significant benefits to the shareholders of both companies. MGM shareholders would be given the opportunity to de-risk their investment and realize immediate, attractive value in cash for their shares. We are confident in our ability to execute on a transaction promptly with engagement from the MGM board of directors.”
Diller added he would recuse himself deliberations by the MGM board of the directors regarding this transaction or any alternative.
MGM did not immediately comment on the offer.
Photo of Barry Diller via Wikimedia Commons
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