Barry Diller Drops $18 Billion MGM Resorts Takeover Plan

Barry Diller's investment firm, People Inc., has abandoned its attempt to take over MGM Resorts International. In June, People had proposed buying the remaining 24.1% of MGM's shares for $48.30 per share, which would have given Diller's company a majority stake of 50.1%. At that time, the deal was estimated to be worth around $18 billion.

Diller expressed disappointment with the proposal not coming together as hoped and stated that People would not be pursuing the acquisition at the moment. The firm still owns approximately 27% of MGM's shares and continues to have confidence in the company's management and prospects. They remain open to the possibility of a strategic transaction with MGM Resorts in the future.

The withdrawal of the bid comes after months of negotiations with a special committee appointed by MGM's board. Diller thanked the committee and MGM directors for their time and consideration during the process. MGM Resorts confirmed the withdrawal of the bid through a statement, emphasizing its excitement to continue leading the company as a standalone entity.

The board highlighted the value MGM brings to its shareholders through its Las Vegas position, regional properties, and BetMGM's growth. BetMGM's continued momentum and international opportunities, such as MGM China and MGM Osaka, also support a path to increasing shareholder value. MGM Resorts' shares dropped 8% in after-hours trading following the news of the withdrawn bid. The report on the pulled proposal was initially published by The Wall Street Journal.