People Incorporated has offered US$48.30 per share in cash to acquire the MGM Resorts stock it does not already own
The proposal would take MGM Resorts International private at a major moment for US gaming consolidation, combining People Incorporated’s existing 26.1% ownership stake with a cash offer for the remaining shares. While non-binding and still subject to review, the bid places one of the world’s best-known casino and entertainment groups at the centre of another potentially transformative transaction for the North American gaming sector.
MGM Resorts International confirmed on Monday, 1 June, that it had received an offer from People Incorporated, formerly IAC, to acquire all outstanding shares of the company that People does not already own for US$48.30 per share in cash. The company said its Board of Directors, in consultation with financial and legal advisors, will carefully review and consider the proposal to determine the course of action it believes is in the best interests of MGM and all shareholders.
The company added that shareholders do not need to take any action at this time and cautioned that there can be no assurance the proposal, or any later proposal, will result in an agreement or transaction. MGM said it remains focused on advancing its position as the world’s premier gaming entertainment company.
According to the proposal, People Incorporated is offering to acquire the shares it does not already own in a transaction that market coverage has valued at around US$18 billion, including debt. People currently owns 26.1% of MGM’s outstanding common stock, making it already the company’s largest shareholder.
People said the offer represents a 24.1% premium to MGM’s 30-day volume-weighted average share price for the period ending 29 May 2026, more than a 30% premium to the 90-day VWAP over the same period, and a 10.6% premium to the most recent closing price. The proposal was submitted as a non-binding expression of interest and is subject to customary conditions, including negotiation and execution of a binding agreement.
Barry Diller, Chairman and Senior Executive of People Incorporated, said: “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. We continue to believe the market materially undervalues the power and durability of MGM’s assets. We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”
Diller added: “I believe this transaction would deliver significant benefits to the shareholders of both companies. MGM shareholders would be given the opportunity to de-risk their investment and realize immediate, attractive value in cash for their shares. We are confident in our ability to execute on a transaction promptly with engagement from the MGM Board of Directors.”
In its letter to MGM’s Board, People Incorporated said it began investing in MGM in 2020 because it viewed the company as a durable growth business not easily displaced by technology. The letter argues that MGM’s assets and businesses are not realising their full potential in public markets and that privatisation would allow People and other investors to provide public shareholders with an attractive cash premium.
People expects to fund any transaction through a combination of existing cash on hand at People Incorporated and MGM Resorts, plus additional debt and equity funding commitments. It also expects to own just over 50.1% of the equity of the company after closing, with other investors potentially including existing MGM shareholders holding minority interests. People would control the MGM business.
The proposal states that any transaction would not be subject to a financing condition, although it would require applicable gaming regulatory approvals and limited competition approvals. People also said it expects MGM’s current management team to continue leading the business and would discuss suitable terms with relevant individuals at the appropriate point in the process.
The bid arrives amid renewed investor attention on major casino operators and follows another large proposed gaming transaction in the US market. Recent market coverage noted that the proposal would take MGM private and expand People’s control over a company with major Las Vegas Strip assets, regional casino operations, international interests and digital betting exposure through BetMGM.
For the wider gaming sector, the approach underscores the perceived value of large-scale, asset-backed casino operators that also have digital growth channels. MGM’s combination of physical resort assets, entertainment venues, international exposure and online betting participation makes it one of the most strategically significant gaming groups in North America.
The next stage will depend on MGM’s Board review, shareholder considerations, financing structure, regulatory approvals and whether a binding agreement can be reached. Until then, the offer remains a non-binding proposal rather than a completed transaction.
