The US holding company of media and internet mogul Barry Diller, People Inc (formerly IAC), has launched a $18bn (£13.4bn) bid for Las Vegas-based casino empire MGM Resorts International.
People Inc has tabled a cash offer of $48.30 per share for the remaining MGM stock the company does not already own, it was announced today, 1 June.
The US’ largest digital and print publisher already owns 26.1% of MGM, which includes MGM Digital, while Diller has occupied a seat on the casino group’s board since the summer of 2020.
News of a potential takeover immediately triggered a 15% jump in MGM shares to around $50 when the New York Stock Exchange opened.
The offer presents more than a 24.1% premium to the stock’s volume-weighted average price of MGM common stock for the 30 trading days ending 29 May – and a 10.6% premium on the most recent closing price.
People Inc says any transaction is likely to be funded through a combination of existing cash on hand at People Inc and MGM, as well as additional debt and equity funding commitments.
People Inc expects to own just over 50.1% and have control of the company, while other investors, including MGM shareholders will hold minority stakes.
As well as iconic properties on the Las Vegas Strip such as the Bellagio and Aria Resort & Casino, the group also owns casino resorts overseas, including in Macau: MGM Cotai and MGM Macau.
Its online business, MGM Digital, includes LeoVegas Group, purchased for around $600m in 2022.
MGM Digital, which operates brands including LeoVegas and BetMGM, is live in 11 markets, mostly in Europe, Canada and Brazil. BetMGM in North America is a JV with Entain.
The JV reported a 6% year-on-year increase in net revenue to $696m for Q1 2026, while EBITDA rose 11% to $25m.
Net revenue for MGM Digital (excluding the US and Ontario JV) rose 43% from $128m in Q1 2025 to $183m for the first quarter of 2026.
On the offer for MGM, Diller, who is People Inc’s chair and senior executive, said: “We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities. That conviction has only strengthened over time.
“We continue to believe the market materially undervalues the power and durability of MGM’s assets. We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”
He also suggested the transaction would deliver “significant benefits to the shareholders” of both companies.
“MGM shareholders would be given the opportunity to de-risk their investment and realise immediate, attractive value in cash for their shares. We are confident in our ability to execute on a transaction promptly with engagement from the MGM board of directors.”
Diller, who is a senior exec at AIC and travel business Expedia Group, founded Fox Broadcasting Corporation alongside Rupert Murdoch and USA Broadcasting. His estimated net worth is $5.5bn.
MGM has previously looked to acquire JV partner Entain, though two bids submitted in 2021 were rejected by the FTSE 100 firm’s board.
People Inc’s swoop for MGM comes just days after Fertitta Entertainment agreed a $31-per-share deal to acquire Caesars Entertainment in an all-cash transaction that values the casino group at $17.6bn.
The valuation includes $11.9bn of Caesars’ outstanding debt.
Fertitta Entertainment is owned by billionaire businessman Tilman Fertitta, who also owns the Golden Nugget casino chain and the NBA’s Houston Rockets. He also currently serves as the US ambassador to Italy and San Marino.
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Billionaire’s People Inc makes $48.30 cash offer for the remaining shares it doesn’t own in a “rare kind of business” with “exceptional digital growth opportunities”
The post Businessman Barry Diller mounts $18bn takeover bid for MGM Resorts International first appeared on EGR Intel.