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MGM Resorts Acquisition Of People Inc. Could Be A Double-Edged Sword!

Recent deal activity around MGM Resorts International has intensified after People Inc., Barry Diller’s media company formerly known as IAC, offered $48.30 per share in cash for the casino operator’s remaining equity. People Inc. already owns approximately 26% of MGM, while its proposal reportedly values the company at about $12.4 billion in equity value. MGM has established a special board committee, retained advisers, and reportedly believes the offer undervalues its portfolio of Las Vegas, regional, Macau, and digital assets. Discussions have become more active, although neither company has announced a definitive agreement. Importantly, the reported proposal involves People Inc. seeking to acquire MGM, rather than MGM acquiring People Inc.