Barry Diller’s People Inc. Withdraws $18 Billion Bid for MGM Resorts

Barry Diller’s company, People Incorporated, has pulled back its plan to buy the rest of MGM Resorts International. The offer was for $48.30 per share in cash, valuing the deal at more than $18 billion. This proposal was first made public in June but was non-binding and depended on final agreements and financing.

People Incorporated already owns about 27% of MGM Resorts. Even after withdrawing the bid, it keeps this stake and says it still believes in MGM’s future and management. Barry Diller explained that the deal’s details weren’t coming together as hoped, so they decided not to pursue taking MGM private at this time.

MGM Resorts’ board had formed a special committee to review and negotiate the offer over several months. Following the withdrawal, MGM confirmed it will continue as an independent company, focusing on its existing strategy and growth plans across Las Vegas, regional properties, online betting, and international markets like China and Japan.

The news caused MGM’s shares to drop roughly 9% in early trading, reflecting the loss of the takeover premium rather than any new operational setback. No new offer or alternative deal terms were announced, but People Incorporated said it remains open to strategic possibilities with MGM in the future.

People Incorporated’s original plan would have kept it as the controlling shareholder, owning just over half the company after the deal. However, reports suggest they faced challenges raising the necessary additional funds, though this has not been officially confirmed.

Overall, MGM Resorts will carry on as a standalone business for now, while People Incorporated stays a major investor. The full picture of what might come next remains unclear.