Barry Diller’s People Inc. Withdraws MGM Resorts Takeover Bid

Barry Diller’s People Inc has withdrawn a bid to acquire the outstanding shares of MGM Resorts International. In June, People proposed acquiring MGM’s remaining 24.1% stake for $48.30 per share, which would’ve given it a majority stake of 50.1% at the time, with other investors holding minority interests. At the time of the proposal, the deal would’ve valued the company at around $18 billion. “There are lots of ingredients that go into a proposal of this kind on its way to completion. We didn’t feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time,” Diller said in a statement. “What is undimmed is our belief in the future of MGM Resorts.” Despite withdrawing the bid, People continues to hold 66.8 million of MGM’s shares, representing a stake of approximately 27%. Diller added that People Inc. has “total confidence” in MGM Resorts’ management and prospects, remains “open to and interested in the possibility of a strategic transaction” with the hospitality company and looks forward to “considering a range of alternatives.” The move follows months of negotiations with a special committee appointed by MGM Resorts’ board. “I want to thank the Special Committee and all the MGM Directors for giving us the time and consideration during the process,” Diller added. “People Incorporated is doing just fine with its principal publishing business achieving its 11th quarter of growth with plenty of cash to both invest in its business and purchase its stock.” In its own statement, MGM confirmed that People’s bid has been withdrawn and said the board “remains excited to continue to lead MGM Resorts as a standalone company.” “Our leading position in Las Vegas, our best-in-class regional properties, and BetMGM’s continued momentum highlight the value we bring to our shareholders,” MGM Resorts Board Chairman Paul Salem said. “In addition, our international portfolio of MGM China and the significant opportunity ahead with MGM Osaka support a clear path to increasing shareholder value.” News of the withdrawn bid was first reported by The Wall Street Journal. Shares of MGM Resorts International fell 8% in after-hours trading on Wednesday.