UMVA has learned that a bold move is underway to take MGM Resorts International private, as People Incorporated, led by Barry Diller, has made a cash offer of $48.30 a share for the stock it does not already own.
This stunning proposal, valued at approximately $18 billion including debt, would grant People control of one of the world's largest gaming and hospitality operators if completed. The bid, which is non-binding, will be carefully reviewed by MGM's board of directors.
The offer comes as no surprise to industry insiders, given that People Incorporated already holds a significant 26.1% stake in MGM's outstanding shares. Under the proposal, People would purchase the remaining shares and transform MGM into a privately held subsidiary, with expectations of owning slightly more than 50.1% of MGM's equity after closing.
According to information obtained by UMVA, the offer represents a 10.6% premium above MGM's May 29 closing price and a 24.1% increase over its 30-day volume-weighted average share price. At the time of writing, MGM Resort's stock had surged 15.8%, reflecting the market's excitement about the potential deal.
This move marks a significant escalation of Barry Diller's growing focus on MGM, following years of building media, internet, and travel businesses. Diller has served on MGM's board and steadily expanded his investment in the company since buying shares during the pandemic downturn.
MGM has become a prized asset for People due to its unique blend of casino resorts and expanding digital operations. The company boasts prominent Las Vegas Strip properties, operates regional casinos across the United States, and has interests in Macau and Japan, as well as a stake in online betting platform BetMGM.
In a letter to MGM's Board of Directors, Diller expressed his conviction that MGM represents a rare kind of business, with real-world assets that AI cannot easily replicate or disintermediate, and exceptional digital growth opportunities. "We began investing in MGM nearly six years ago because we believed it represented a rare kind of business," Diller wrote.
MGM's board has begun reviewing the proposal, which it received on June 1, and will evaluate it with financial and legal advisers. The company stressed that shareholders do not need to take any action at this point, as the board carefully considers the proposal to determine the course of action that it believes is in the best interests of the Company and all of its shareholders.
The offer arrives during a period of significant consolidation across the gaming industry, with a $17.6 billion agreement to acquire Caesars Entertainment announced just days earlier. This deal would combine casino resorts, digital gaming operations, and hospitality assets under one umbrella, creating a portfolio spanning 60 gaming properties nationwide.
MGM's recent financial results have showcased its attractiveness to investors, with revenue of $4.6 billion in the fourth quarter of 2025, up 6% year over year, and net income jumping 87% to $294 million. Growth was driven by strong results in China and expanding digital operations, although investors continue to monitor softer performance on the Las Vegas Strip.
People believes that taking MGM private could allow management to pursue long-term plans away from public market pressures. While discussions remain preliminary, and neither company has indicated that a final deal is assured, the proposal has already sent shockwaves through the gaming industry.
