A €42.45-per-share offer abandoned
People Inc, formerly IAC, announced on Wednesday 23 September that it had withdrawn its proposal to acquire all the shares in MGM Resorts International still held by the public. According to Reuters, the casino operator’s shares fell 8% in after-hours trading.
Tabled in June 2026, the offer was pitched at around €42.45 (USD 48.30) per share in cash. It valued MGM Resorts at more than €15.8bn (over USD 18bn). People already holds around 27% of the group’s capital.
Barry Diller explained that not all of the conditions had come together as hoped and that People had decided not to pursue a take-private of MGM at this stage. He added, however, that the group remained open to a possible strategic transaction with MGM Resorts and intended to consider other options.
MGM Resorts opts for independence
In a separate statement published the same day, MGM Resorts said its board of directors was enthusiastic about continuing to run the group as an independent company.
The operator runs landmark properties accounting for around 40% of the Las Vegas Strip. Yet it is contending with sluggish visitor numbers in this historic market. For several quarters now, its growth has relied on its assets in China, including Macau, and on its digital businesses.
Its MGM Hospitality Group (Asia Pacific) division has just opened MGM Shenzhen Prince Bay, in the heart of the Greater Bay Area. On the Strip, the group can also draw on its long-term licensing agreement with Marriott International, of which the conversion of a property into W Las Vegas was one of the milestones.
Six years of building a stake
People began building its stake in MGM in 2020, when the group’s share price was heavily depressed by the closures and travel restrictions linked to the Covid-19 pandemic.
Barry Diller considered MGM undervalued. In his view, the growing stake would allow People to diversify beyond its core media business, which notably includes People magazine and Food & Wine.
The move recalls his earlier bet on travel and leisure with Expedia. IAC acquired the online travel agency in 2002, grew it and then spun it off as a standalone company. Barry Diller still chairs the board of Expedia Group, which has been led since 2024 by French-American executive Ariane Gorin.
A reference shareholder still lying in wait
Analysis – Withdrawing the offer does not sever the shareholding link between People and MGM Resorts. With around 27% of the capital and the door left open to a strategic transaction, Barry Diller retains a pivotal position in the group’s future. The fall in the share price after the announcement suggests the market had partly priced in the prospect of a buyout. It remains to be seen which options People intends to explore. MGM has already shown it can reshape its Strip portfolio, as illustrated by the sale of the Mirage’s operations to Hard Rock International, announced in late 2021.
At a glance by The Hospitality Tribune
People Inc withdraws its take-private bid for MGM Resorts
Barry Diller’s People Inc (formerly IAC) withdrew on 23 September 2026 its June offer of USD 48.30 per share in cash
The proposal valued MGM Resorts at more than USD 18bn; People already holds about 27% of the company
MGM shares fell 8% in extended trading; the board says it will continue as a standalone company
MGM controls roughly 40% of the Las Vegas Strip and has leaned on China, including Macau, and digital for growth
People remains open to a strategic transaction with MGM and will consider alternatives
