NEW YORK, June 1, 2026, 10:05 EDT
Barry Diller’s People Incorporated offered to buy the MGM Resorts International shares it does not already own for $48.30 apiece in cash, a bid that would take one of Las Vegas’ largest casino operators private and value it at more than $18 billion including debt. The proposal is non-binding, meaning neither side is yet required to complete a deal.
The bid matters now because People already owns 26.1% of MGM, and Diller is not just an outside buyer; he is also a director of MGM. The company said the offer is 10.6% above MGM’s most recent closing price and 24.1% above its average trading price over the prior 30 trading days.
Investors moved quickly. MGM shares were up about 13% at $49.35 in midmorning New York trading, above the proposed offer price, while People’s Nasdaq-listed shares, still trading under the IAC ticker, rose about 1%.
Diller said People began investing in MGM in 2020 because the company had real-world assets that artificial intelligence tools could not easily copy or displace. He said the market “materially undervalues” MGM’s assets and called its management team “superb.” PR Newswire
People said it expects to fund any transaction with existing cash at People and MGM, plus debt and equity commitments. The company would own just over 50.1% of MGM’s equity after a deal, with other investors holding minority stakes, and would control the business.
The move extends a shift Diller laid out in April, when IAC said it would change its name to People Incorporated and focus more tightly on its publishing business and its MGM stake. In that letter, Diller described MGM’s hard assets as a hedge against faster changes in digital media.
MGM’s own numbers give both sides material to argue. The company reported record first-quarter consolidated revenue of $4.5 billion, up 4%, but its Las Vegas Strip segment’s adjusted EBITDAR — a property-level earnings measure before rent and some other costs — fell 8%. MGM China revenue rose 9% and MGM Digital revenue rose 43%, while CEO Bill Hornbuckle said the company was seeing “signs of strength” from convention bookings and refreshed rooms at MGM Grand Las Vegas. MGM Resorts Investor Relations
MGM is not a small casino name being taken out at the edge of the market. Reuters reported that its marquee properties account for roughly 40% of the Las Vegas Strip, while the company also has exposure to Macau and to BetMGM, its online sports-betting venture.
The offer lands during a busy stretch for casino dealmaking. Fertitta Entertainment agreed last week to buy Caesars Entertainment in a $17.6 billion deal including debt, putting another major Las Vegas operator on a path toward private ownership if that transaction closes.
Mizuho analyst Ben Chaiken said the People proposal could start negotiations and set a “floor” under MGM’s stock, Barron’s reported. He kept an Outperform rating and a $59 price target, pointing to a chance that improving Las Vegas traffic could support a value above the current offer. Barron’s
But the route is not clean. People said the proposal can be withdrawn or changed and still requires a binding agreement, final financing work and gaming regulatory approvals; Diller also said he would recuse himself from MGM board deliberations. MGM did not immediately respond to a Reuters request for comment.
For MGM shareholders, the first question is whether $48.30 is a clearing price or just an opening number. The stock trading above the bid suggests some investors see room for a higher offer or a tougher board review, though Diller told MGM that People has no intention of backing a sale to another buyer that would change control or meaningfully dilute its stake.
