Barry Diller-Led Group Offers $18B for MGM Resorts

Barry Diller’s People Inc., formerly known as IAC, has proposed acquiring MGM Resorts International in an all-cash transaction valued at approximately $18 billion. Under the proposal, People would acquire all outstanding MGM shares it does not already own for $48.30 per share.

MGM currently operates 31 resorts and casinos worldwide, with a strong concentration in Las Vegas. MGM is the largest resort operator on the Las Vegas Strip, with nearly 37,000 hotel rooms across 13 properties, according to the Las Vegas Review-Journal. Included in the company’s operating portfolio are MGM Grand, Bellagio, ARIA Resort & Casino and Empire City Casino in Yonkers, N.Y.

The offer represents a 10.6 percent premium to MGM’s most recent closing share price. The company currently owns 26.1 percent of MGM’s outstanding common stock, a position it has built over the past six years.

The proposal follows other recent consolidation activity in the gaming sector, including Fertitta Entertainment Inc.’s $5.7 billion acquisition of Caesars Entertainment, announced last week.