Barry Diller’s People Inc., the largest shareholder of MGM Resorts, has made an all-cash offer to buy the rest of the casino and hotel operator.
People Inc., which holds roughly a 26 percent stake in MGM, offered $48.30 per share for the shares it does not already own—about a 10.6 percent premium to MGM’s prior closing price, the company said on June 1. The proposal implies an equity value of roughly $12.4 billion and an enterprise value of about $18 billion with MGM’s debt included.
“We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real-world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities,” Diller said in a letter outlining the bid. He added that his conviction has strengthened over time….