Barry Diller’s People Inc. has withdrawn a bid to acquire the outstanding shares of MGM Resorts International, but still believes the gaming company has a bright future.
In June, People, which currently owns an approximately 27% stake in MGM, proposed acquiring MGM’s shares it doesn’t own, valuing the deal at more than $18 billion. It had offered $48.30 a share for the remaining shares.
“There are lots of ingredients that go into a proposal of this kind on its way to completion,” Diller, chairman and senior executive with People, said in a statement. “We didn’t feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time.”
Diller stressed that what was “undimmed is our belief in the future of MGM Resorts.” The company confirmed it continues to hold 66.8 million shares, representing approximately 27% of the company.
Shares of MGM were down $3.24, or 8.57% to $34.61 in afterhours trading. The Las Vegas-based company is listed on the New York Stock Exchange.
“We at People remain open to and interested in the possibility of a strategic transaction with MGM Resorts and look forward to considering a range of alternatives,” Diller added.
MGM operates 11 properties on the Las Vegas Strip, plus regional casinos throughout the U.S. and resorts in Macau. The company also has a 50-50 partnership with Entain to operate mobile sports betting and igaming site BetMGM.
MGM confirmed People had withdrawn its June 1 proposal, after a special committee of the company’s board of directors had participated in negotiations with People.
“The board remains excited to continue to lead MGM Resorts as a standalone company,” Paul Salem, chairman of the MGM board, said in a statement.
Despite termination of the merger, Salem said there was a significant opportunity ahead with Osaka to support a clear path to increasing shareholder value. MGM Osaka, a $10 billion project, is currently under construction on Yumeshima island in Osaka Bay. Japan’s first integrated resort is scheduled to open by the end of 2030.
MGM’s Dubai mega project is scheduled to open in the third quarter of 2028. The $2.5 billion project is being built on a manmade island just past Burj Al Arab in Umm Suqeim.
Earlier this month, MGM CEO Bill Hornbuckle said the company was still waiting on the UAE to approve their gaming license, but he remained confident it will be granted.
