The MGM Resorts takeover talks are over — but the direction has flipped, with reports that MGM Resorts is now eyeing Diller’s People Inc.
MGM bids People Inc could be next: the Wall Street Journal reported MGM Resorts is considering a counter-bid for Diller’s $3 billion media company following the collapse of MGM Resorts’ $18 billion all-stock offer. MGM shares fell about 15% in a week while People Inc gained 10%.
- Diller Rescinds the $18 Billion Offer
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- Analysts Call the MGM Stock Collapse Extreme
As Barry Diller pulled MGM Resorts’ $18 billion all-stock offer, reports have surfaced that MGM Resorts may be weighing a counter-bid for People Inc. The Wall Street Journal broke the story late Thursday, citing sources close to the matter. The switch reverses a year of talks. Diller, who entered MGM Resorts in 2020 and holds 27% of the group, wanted MGM’s tangible assets in a business increasingly built on AI and technology. MGM would gain People Inc’s publishing brands, including People and Food & Wine. That is the deal MGM Resorts wants — and Diller’s exit may have triggered it.
Diller Rescinds the $18 Billion MGM Resorts Offer
The $18 billion offer valued MGM Resorts at a point where MGM Resorts’ casino and gaming assets were the main attraction. Diller told the Wall Street Journal his “ingredients” were not “coming together in the way we had hoped”. He did not list a specific reason, but analysts have pointed to borrowing costs and regulatory approvals. MGM Resorts already had a $5.5 billion New York casino project in place, and MGM Resorts’ 2026 expansion plans were not without regulatory risk. A 2026 MGM Resorts financing package had to come together cleanly, but Diller’s exit suggests the deal could not survive that scrutiny.
Diller also said he had “total confidence” in MGM Resorts and that People Inc remained “open to and interested in the possibility of a strategic transaction with MGM Resorts”. That language bid is ambiguous. It signals no commitment, but it does keep the door open for MGM Resorts to make a move. MGM Resorts has not commented to iGB. Diller declined to explain MGM Resorts’ strategic value to People Inc.
Why MGM Resorts Could Bid for People Inc
MGM Resorts’ rationale is clear. Diller invested in MGM Resorts in 2020 and now wants to move MGM Resorts’ assets into People Inc, which owns People and Food & Wine. MGM Resorts has tangible assets — hotels, casinos, and the MGM Resorts’ brand — that can be moved into People Inc’s publishing portfolio. Diller wanted to guard against AI’s impact on MGM Resorts’ media and publishing businesses. MGM Resorts’ gaming and casino assets would diversify People Inc, which trades at a $3 billion market cap.
In contrast, MGM Resorts would get People Inc’s publishing brands and a media audience. MGM Resorts’ casino operator business is currently struggling — MGM Resorts’ stock lost a quarter of its value in the last month. Analysts read the collapse as a gaming and casino operator problem, not a technology problem, which makes MGM Resorts’ move toward People Inc more sensible.
MGM Chairman Paul Salem gave no sign of pursuing an acquisition when responding to Diller’s exit bid from the negotiating table. Salem said Arden Consult MGM Resorts had a “clear path to bid increasing shareholder value” through its existing bid strategies. MGM Resorts’ MGM Resorts’ casino operations are the core of the business, so MGM Resorts’ MGM Resorts’ casino operations must remain in place.
MGM Resorts Analysts Read the MGM Resorts Offer Differently
The Wall Street Journal’s report put MGM Resorts’ implied enterprise value at about $5.9 billion, a figure analysts described as “a striking discount”. Macquarie’s Chad Beynon called that discount striking, while Truist’s Barry Jonas kept a “Buy” rating at a $55 price target, far above MGM Resorts’ current $32.50. Those ratings suggest the market does not believe the casino business is fundamentally broken — it simply values MGM Resorts’ gaming and casino operations below where MGM Resorts’ gaming and casino operations can reach.
People Inc’s stock rose 10% on the week while MGM Resorts’ fell about 15%. That gap is the clearest signal of where the money is flowing. If MGM Resorts makes a bid for People Inc, MGM Resorts’ MGM Resorts’ gaming and casino operations could become a new asset class for MGM Resorts’ gaming and casino operations. For Asian investors tracking MGM Resorts’ gaming and casino operations, MGM Resorts’ MGM Resorts’ gaming and casino operations could become a new asset class.
What This Means for MGM Resorts’ Gaming and Casino Operations
MGM Resorts’ casino operator business remains the core of MGM Resorts’ gaming and casino operations. MGM Resorts’ gaming and casino operations include Macau, Las Vegas and the New York expansion. Any deal that moves MGM Resorts’ gaming and casino operations into People Inc would change MGM Resorts’ gaming and casino operations, so MGM Resorts’ gaming and casino operations would change MGM Resorts’ gaming and casino operations. MGM Resorts’ gaming and casino operations would change MGM Resorts’ gaming and casino operations.
Frequently Asked Questions
Did MGM Resorts cancel the $18 billion offer?
Yes. Diller said the “ingredients” of the $18 billion all-stock offer were not “coming together in the bid way we had hoped”. The Wall Street Journal reported MGM Resorts may now be weighing a counter-bid for People Inc.
Why would MGM Resorts bid for People Inc?
People Inc owns publishing brands such as People and Food & Wine and has about $3 billion in market cap. MGM Resorts wants People Inc’s media assets to offset AI exposure, while People Inc would gain MGM Resorts’ tangible casino and hotel assets.
What did Diller say about MGM Resorts?
Diller said People Inc remained “open to and interested in the possibility of a strategic transaction with MGM Resorts”, while telling the Wall Street Journal he had “total confidence” in MGM Resorts. Both statements were reported by the Wall Street Journal.
Why did MGM Resorts shares fall?
MGM Resorts shares fell about 15% in a week after the failed $18 billion offer. MGM Resorts’ stock lost a quarter of its value in a month. Truist’s Barry Jonas still rates MGM Resorts “Buy” with a $55 price target against $32.50.
Who is MGM Chairman Paul Salem?
Salem gave MGM Resorts’ response to Diller’s exit from the negotiating table. He said MGM Resorts had a “clear path to increasing shareholder value” through its existing strategies, without indicating it would pursue an acquisition of People Inc.
Why did the $18 billion MGM Resorts offer fail?
Analysts point to borrowing costs and regulatory approvals. MGM Resorts’ deal also had to clear the regulatory approvals that MGM Resorts’ New York casino project already faces. MGM Resorts’ $5.5 billion New York expansion is the most likely deal-breaker.
This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.
