LAS VEGAS — People Inc. proposed to acquire MGM Resorts International for more than $18 billion, offering $48.30 per share in cash on June 2, 2025. The offer represents a premium of about 10.6% over MGM’s closing stock price of $43.67 on the prior Friday.
People Inc. already owns 26.1% of MGM Resorts’ outstanding common stock. Following the announcement, MGM shares rose more than 10% in premarket trading, while People Inc. shares increased nearly 3%.
The company, which was renamed from IAC in April, began investing in MGM Resorts about six years ago. People Inc. expects to complete the transaction using cash on hand along with additional debt and equity funding commitments. If the deal proceeds, MGM Resorts would become a private company controlled by People Inc.
Barry Diller, chair of People Inc., has been a key figure in the investment. In a letter to shareholders dated April 28, he described MGM stock as “wildly undervalued” and said the company would sharpen its focus on its MGM stake. Diller began accumulating shares in MGM during the Covid-19 pandemic when closures and travel restrictions weighed on the casino operator’s stock price.
“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. That conviction has only strengthened over time.”
MGM Resorts owns marquee Las Vegas Strip properties, including the Bellagio and Luxor, which account for roughly 40% of the Strip’s presence. The company has faced sluggish foot traffic in Las Vegas in recent quarters but has leaned on growth from its China operations, including Macau, and its digital arm. Its BetMGM venture has emerged as one of the leading U.S. online sportsbooks. Diller also sits on the MGM Resorts board and would recuse himself from any board vote on a potential deal, according to company disclosures.