People Incorporated has withdrawn its attempt to take MGM Resorts International private, ending several months of negotiations over a transaction that valued the casino and betting group at more than $18bn.
The media and investment company, previously known as IAC and chaired by Barry Diller, submitted its non-binding proposal on 1 June. It offered $48.30 in cash for every MGM share it did not already own, representing a 24.1% premium to MGM’s 30-day volume-weighted average share price at the time.
People Incorporated held 26.1% of MGM when the offer was announced. Its position has since risen to 66.8 million shares, equal to approximately 27% of the company.
MGM established a special committee of its board to consider the proposal and held negotiations with People Incorporated over the following months. On 23 September, both companies confirmed that the acquisition attempt had been abandoned and that MGM would remain publicly traded as a standalone business.
People Incorporated keeps its MGM stake
Diller said the conditions required to complete the transaction had not developed as People Incorporated had expected, leading the group to stop pursuing a full takeover for now.
However, the withdrawal does not mark a complete retreat from MGM. People Incorporated said it continues to have confidence in MGM’s management and long-term prospects and intends to retain its roughly 27% holding.
The company also left the door open to another form of deal, saying it remains interested in the possibility of a future strategic transaction with MGM and would consider alternative structures.
MGM Chairman Paul Salem said the board would now continue implementing the company’s existing strategy independently, pointing to its Las Vegas and regional casino operations, BetMGM’s development and MGM’s international portfolio as key sources of future shareholder value.
BetMGM and international expansion remain central
A successful acquisition would have placed MGM’s extensive physical casino portfolio and growing online betting operations under People Incorporated’s control.
MGM owns major properties across the US and holds an international presence through MGM China, while its integrated resort project in Osaka represents one of its most significant future developments outside the domestic market.
Digital gambling has also become an increasingly important part of MGM’s strategy. BetMGM was founded in 2018 through MGM Resorts’ partnership with Entain and remains a 50/50 joint venture between the two companies in the US.
MGM expanded its international online presence further through its acquisition of LeoVegas. The company launched a recommended offer for the Swedish operator in May 2022 at a total tender value of approximately $607m, with 96% of LeoVegas shareholders accepting the offer by the end of August that year.
LeoVegas subsequently became an important platform for MGM’s international digital expansion, including the rollout of BetMGM outside the US.
The withdrawn transaction also removes, at least for now, another potential source of speculation around Entain. MGM previously attempted to acquire the UK-listed gambling group in 2021 with an offer worth about $11bn, but the approach was rejected.
With People Incorporated’s proposal now off the table, MGM will continue operating independently while its largest shareholder maintains a significant minority position and remains open to other forms of strategic cooperation.