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Barry Diller MGM: Barry Diller’s People Inc. has launched an $18 billion bid to acquire MGM Resorts International.
The company has offered $48.30 per share in cash for the casino and hospitality giant.
MGM Resorts operates some of the most prominent properties on the Las Vegas Strip, including Bellagio and Aria. Investors reacted positively to the takeover proposal.
MGM shares climbed about 11% in early trading on Monday following news of the offer.
Shares of People Inc. also moved higher, gaining approximately 2% in early market activity.
The proposed acquisition would mark one of the largest deals in the gaming and resort industry if completed.
Barry Diller said he would recuse himself from any MGM Resorts board discussions or decisions related to the proposed acquisition.
Diller currently serves on the company’s board of directors and disclosed the commitment in a letter sent to MGM’s board.
People Inc., previously known as IAC, holds an approximately 26.1% ownership stake in MGM Resorts.
The company has been one of MGM’s largest investors for several years.
In a statement announcing the proposal, Diller said the investment was originally made because MGM combined valuable physical assets with significant opportunities for digital expansion.
He added that the company’s portfolio of real-world properties offers advantages that are difficult for artificial intelligence to replicate or replace.
Diller described MGM as a business with long-term growth potential, supported by both its established resort operations and evolving digital initiatives.
Barry Diller said he believes MGM Resorts remains significantly undervalued by the market despite the strength of its assets and long-term business prospects.
In comments accompanying the takeover proposal, Diller praised MGM’s leadership team and expressed confidence in the company’s future direction.
He said the proposed transaction would provide an opportunity to support MGM’s next stage of expansion while helping to realize what he views as the company’s full value.
Diller also highlighted the resilience of MGM’s asset portfolio and its potential for sustained growth in the years ahead.
Reports of a possible bid surfaced before the official announcement.
CNBC’s Andrew Ross Sorkin had previously reported that an offer for MGM Resorts could be made as early as Monday.
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