Barry Diller's People bids for MGM Resorts, values casino operator at $18 billion
Media mogul Barry Diller's People Inc proposed a $18 billion buyout of MGM Resorts, offering a 10.6% premium for the remaining shares.Summary
Media mogul Barry Diller's People Inc has proposed to buy MGM Resorts for more than $18 billion, offering $48.30 per share for the remaining stake. This bid follows Tilman Fertitta's $17.6 billion acquisition of Caesars Entertainment and comes as casino operators face high debt and slowing consumer demand. People currently owns a 26.1% stake in MGM and expects to own just over 50.1% of the company's equity. Diller views MGM as undervalued and sees the deal as an opportunity to diversify beyond its core media business. The casino operator's shares surged 14.5% to $50, trading above the offer price. Diller's interest in MGM dates back to the COVID-19 pandemic, and he believes the company represents a rare business with real-world assets that AI cannot easily replicate and exceptional digital growth opportunities.
(Source：Reuters)