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Barry Diller Abandons Bid to Acquire MGM Resorts
Confirmed
In Short: Barry Diller, chairman and senior executive of People Inc., announced Wednesday that he is abandoning his bid to acquire MGM Resorts International.
Barry Diller, chairman and senior executive of People Inc., announced Wednesday that he is abandoning his bid to acquire MGM Resorts International.
Diller had initially proposed the acquisition in June, writing to the MGM Resorts board that the company's shares were undervalued and represented a 'compelling opportunity to support MGM’s next phase of growth and help unlock its full value.
MGM Resorts chairman Paul Salem responded, 'The board remains excited to continue to lead MGM Resorts as a standalone company.
People Inc., which includes lifestyle brands such as People magazine, InStyle, and Food & Wine, continues to hold 66.8 million shares of MGM Resorts, representing approximately 27% of the company.
Diller noted that his interest in MGM Resorts was based on the belief that resorts, casinos, and experiences would be 'AI proof' propositions in a rapidly changing entertainment and media landscape.
MGM Resorts issued its own statement, confirming that a special committee had been in talks with People Inc. but ultimately decided to remain a standalone company.
Diller's decision comes after his unsuccessful attempt to acquire Paramount Pictures, which was ultimately acquired by Skydance Media.
The proposed acquisition of MGM Resorts would have valued the company at approximately $18 billion, making it one of the largest deals in the media and entertainment industry.
Diller's People Inc. was formed through the acquisition of publisher Meredith, and the company's Dotdash Meredith publishing unit had recently changed its name to People Inc.
Despite the setback, Diller emphasized that his belief in the future of MGM Resorts remains undimmed and that People Inc. remains open to strategic transactions with the company.
What's confirmed
- “There are lots of ingredients that go into a proposal of this kind on its way to completion,” Diller, chairman and senior executive with People, said in a statement.
- “The board remains excited to continue to lead MGM Resorts as a standalone company,” Paul Salem, chairman of the MGM board, said in a statement.
- “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 stressed that what was “undimmed is our belief in the future of MGM Resorts.” The company confirmed it continues to hold 66.8 million shares, representing approximately 27% of the company.
- “We at People remain open to and interested in the possibility of a strategic transaction with MGM Resorts and look forward to considering a range of alternatives,” Diller added.
What's still developing
- Diller, who had significant tours of duty in Hollywood at Paramount and Fox before entering the digital media business, made an offer to buy Paramount before Skydance ultimately acquired it in 2025.
- RELATED: Barry Diller Says His Interest In Bidding For Paramount “Unquestionably” Pushed Skydance To Seal Merger Comments On Deadline Hollywood are monitored.
- It wasn’t in the cards for Barry Diller to become a Las Vegas kingpin.
- The mogul’s People Inc (formerly known as IAC) dropped its $18 billion plan to take over MGM Resorts International, the owner of the MGM Grand, Aria, Bellagio, Cosmopolitan, Mandalay Bay, New York-New York, Luxor, Excalibur and other neon-lit staples of the Las Vegas strip.
- When Diller made his play in June he characterized the move to own just over 50 percent of the company as a big bet on resorts, casinos and experiences being an “AI proof” proposition for consumers in a world where entertainment and media is rapidly being disrupted by tech giants.
- MGM Resorts on Wednesday confirmed People Inc.’s move to drop the takeover bid.