People Inc Withdraws $18bn Offer for MGM Resorts International
People Inc, led by Barry Diller, abandoned its $18bn cash bid to acquire all remaining shares in MGM Resorts International, though it retains a 27% stake and remains open to future strategic deals.
Key Takeaways
- People Inc has cancelled its $18bn offer to fully acquire MGM Resorts International.
- Barry Diller’s company remains MGM's largest shareholder with a 27% holding.
- MGM’s share price dropped 8% following the withdrawal, closing at $37.85.
- People Inc has signalled potential openness to strategic deals with MGM in the future.
- Sector M&A continues, highlighted by Fertitta Entertainment’s $17.6bn Caesars buyout.
People Inc, the largest digital and print publisher in the US chaired by Barry Diller, has withdrawn its $18bn all-cash proposal to acquire the remaining publicly traded shares of MGM Resorts International. The bid, offered at $48.30 per share, was first announced four months prior, causing MGM's share price to rise by 15% at the time. After extended negotiations, People Inc has stepped back but continues to hold 66.8 million shares, representing approximately 27% of MGM's outstanding stock, and left the door open for renewed talks in the future.
People Inc’s Aborted Acquisition: Details and Rationale
Barry Diller, People Inc's chair and long-serving board director at MGM Resorts International, noted the complexity of such a large-scale transaction, stating, > "lots of ingredients go into a proposal of this kind, but we didn’t feel the mix was coming together in the way we had hoped," — Barry Diller, People Inc.
Despite abandoning the pursuit, People Inc asserted ongoing confidence in MGM. The company cited "total confidence in both the management and the company’s prospects," and indicated that its strategic interest remains active. Diller confirmed People Inc's willingness to reconsider possibilities for a future transaction.
MGM Resorts International’s Response and Market Impact
MGM Resorts International had established a special board committee to negotiate terms with People Inc in an effort to safeguard shareholder value. The end of talks prompted an immediate market reaction—MGM shares fell 8% in after-hours trading and closed on 23 September down nearly 3% at $37.85 on the New York Stock Exchange.
Paul Salem, chair of MGM Resorts, commented: > "The board remains excited to continue to lead MGM Resorts as a standalone company. Our leading position in Las Vegas, our best-in-class regional properties and BetMGM’s continued momentum highlight the value we bring to our shareholders."
MGM's portfolio includes flagship properties along the Las Vegas Strip (Bellagio, Aria Resort & Casino) and international venues such as MGM Cotai and MGM Macau. Its digital presence is anchored by a 50% stake in BetMGM in North America and, via subsidiary LeoVegas Group, operations abroad. MGM Digital posted a 20% revenue rise in Q2 2026 to $196 million, but its EBITDAR remained negative at $31 million compared to a $26 million loss a year earlier. Gary Fritz, MGM Digital's chief commercial officer, projected "substantial levels of profitability in 2027."
People Inc’s Shareholding, Deal Structure and Future Scenarios
With 66.8 million MGM shares held, People Inc maintains a significant influence but not majority control. The shelved deal envisioned People Inc funding the buyout through its own reserves, available MGM cash, and committed new debt and equity financing. Upon completion, People Inc was expected to hold approximately 50.1% of MGM’s shares, with the remainder to be retained by legacy MGM shareholders and other investors. For now, People Inc's stake remains the largest of any single shareholder, maintaining a presence on MGM’s board through Diller, who joined in 2020.
Diller also chairs the board at Expedia and is the founder of Fox Broadcasting Company, with Forbes estimating his net worth at $5.9 billion in 2026. Diller reaffirmed People Inc's stance towards potential future transactions involving MGM Resorts International, stating that the group is "open to and interested in the possibility of a strategic transaction."
Wider Sector Context: Competing Casino Takeovers
The People Inc-MGM development coincides with significant M&A activity in the land-based and online casino sector. Rival operator Caesars Entertainment recently accepted a $17.6bn buyout offer from Fertitta Entertainment, led by Tilman Fertitta, following a $31 per share bid tabled in May 2026. The successful all-cash deal was backed by Caesars shareholders earlier this week.
The market's competitive landscape remains dynamic, with MGM's international expansion—including MGM China and the forthcoming MGM Osaka project—cited by MGM leadership as key opportunities for future shareholder value. BetMGM’s continued growth and regional assets further reinforce this outlook.
MGM Resorts and People Inc: Next Steps
People Inc’s decision to withdraw this bid marks a pause, not a definitive end to takeover ambitions in the casino sector. The company’s ongoing position as MGM’s largest shareholder keeps strategic options open. MGM leadership has reaffirmed its commitment to remain independent for the time being, focusing on property performance, digital growth, and international expansion.
The immediate effects were evident in market trading, board statements, and public communications. Discussions about the future of MGM’s ownership and further possible sector consolidation are likely to continue among operators, investors, and market analysts. For further developments on M&A in gaming, see industry deal analysis and latest news coverage.
Frequently Asked Questions
Why did People Inc withdraw its takeover offer for MGM Resorts International?
People Inc withdrew its $18bn cash offer after concluding that the deal's components were not aligning as hoped, according to chair Barry Diller. Despite extensive negotiations, the group decided not to pursue the acquisition at this time.
How much of MGM Resorts International does People Inc currently own?
People Inc continues to hold 66.8 million shares, representing about 27% of MGM Resorts International's outstanding stock. This makes People Inc the largest single shareholder in the operator.
What was MGM Resorts’ response to People Inc’s abandoned bid?
MGM Resorts formed a special committee to negotiate but greeted People Inc’s withdrawal by emphasizing its strong standalone position and the value within its property and digital businesses. The company’s leadership reaffirmed plans to pursue independent growth.
What impact did the withdrawal have on MGM Resorts’ share price?
MGM Resorts shares fell 8% in after-hours trading immediately following the announcement and settled at $37.85 at the end of 23 September. The stock had previously risen 15% when the initial bid was made public.
Are mergers and acquisitions still active in the casino sector?
Yes, M&A activity remains significant, with Fertitta Entertainment’s $17.6bn acquisition of Caesars Entertainment approved by shareholders just this week. The sector continues to see interest from major investors and operators.
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About the author
Marcus Webb
Industry Deals Correspondent
Marcus Webb covers the deal flow of the gambling industry — operator strategy, M&A, market entries, and product launches from sportsbook rebrands to full platform migrations. The reports name the companies, valuations, and jurisdictions exactly as disclosed and separate the announcement from its market impact. When a group consolidates a brand or a challenger launches into a new state, Marcus Webb explains who gains, who pays, and what closes next quarter.
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