People Incorporated, formerly IAC, said June 1 it has proposed to buy the MGM Resorts International shares it does not already own for $48.30 apiece in cash.
People Incorporated already owns 26.1% of MGM’s outstanding common stock. Under the proposal, it would acquire the rest of the company and expects to end up with just over 50.1% of the equity, with other investors holding minority stakes.
The offer price implies a 24.1% premium to MGM’s 30-trading-day volume-weighted average price through May 29, 2026, more than a 30% premium to the 90-day average, and a 10.6% premium to the most recent closing price.
Barry Diller, chairman and senior executive of People Incorporated, said the company began investing in MGM nearly six years ago and believes the assets are undervalued in the public market. He said People Incorporated expects to fund the transaction with existing cash at both companies plus additional debt and equity commitments.
The proposal would leave MGM’s current management team in place, according to the letter, and would not be subject to a financing condition. It would still require a definitive agreement and regulatory approvals, including gaming approvals. The market has reacted to these announcements by moving the company's shares 1.6% to a price of $45.61. If you want to know more, read the company's complete 8-K report here.
