Media mogul Barry Diller’s People Inc said on Monday it has proposed to buy MGM Resorts valuing the casino operator at more than $18 billion.
The offer comes just weeks after Diller, the digital media company’s chairman, told shareholders in an April 28 letter that People would sharpen its focus on its MGM stake, calling the stock “wildly undervalued.”
People currently owns 26.1% of the outstanding common stock of MGM. It is planning to bid $48.30 a share in cash for the remaining company, representing a premium of about 10.6% to MGM’s Friday close of $43.67.
MGM’s shares rose more than 10% in premarket trading, while those of People – renamed from IAC in April – rose nearly 3%.
