MGM Resorts International (NYSE:MGM) shares surged 10% on Monday after a report indicated that Barry Diller’s People Inc., formerly known as IAC, is preparing a takeover proposal that could value the casino and hospitality group at approximately $18 billion.
According to a report from The New York Times’ DealBook, People Inc. is considering an all-cash offer of $48.30 per share for the portion of MGM Resorts it does not already own. The proposed price would apply to the remaining 73.9% of the company and represents a premium of roughly 10.6% to Friday’s closing share price.
Existing Shareholder Position Strengthens Bid Potential
People Inc. is already MGM Resorts’ largest shareholder, holding a 26.1% equity stake in the company.
The investment group also has significant representation at the board level, including two board seats, one of which is held by Barry Diller. The existing ownership position is seen as giving People Inc. a strategic advantage should it decide to pursue a formal acquisition.
No Formal Proposal Submitted Yet
While the report outlined details of a potential transaction, no timetable has been disclosed for when an official offer could be presented to MGM Resorts’ board.
Neither company has publicly announced a definitive agreement, leaving uncertainty over whether discussions will ultimately result in a formal takeover proposal.
Investors nevertheless responded positively to the prospect of a buyout, sending MGM shares sharply higher in early trading.
MGM Continues Expanding Beyond Traditional Casinos
MGM Resorts remains one of the largest gaming and hospitality operators in the world, with a portfolio that includes several flagship properties on the Las Vegas Strip, such as Bellagio, MGM Grand and Aria.
In recent years, the company has also invested heavily in online gaming and sports betting initiatives as it seeks to diversify revenue streams and capitalize on the expanding digital wagering market.
The reported interest from People Inc. comes as consolidation activity and strategic investments continue to reshape the global gaming and entertainment sector.