MGM Resorts International minority shareholder People Inc has submitted a nonbinding proposal to purchase the operator’s remaining stock at $48.30 per share and assume over $5.5bn of debt, valuing MGM Resorts at approximately $18bn.
People Inc is corporately owned by InterActiveCorp (IAC) and controlled by IAC Founder Barry Diller, while currently maintaining a 26.1% share in MGM Resorts. Diller confirmed any transaction would be funded with a combination of cash on hand and additional debt and equity funding commitments.
If the transaction is approved by MGM Resorts’ Board of Directors, Diller’s company would take the operator private and leave People Inc with a 50.1% controlling share.
In a letter addressed to the Board, Diller stated MGM Resorts’ assets and businesses are “not currently realizing their full potential in the public markets,” and that it would be “difficult to correct this situation in MGM’s current form as a public company.”
In April, MGM Resorts signed a new voting agreement with Diller and IAC, formalizing how certain large shareholdings will be voted and setting parameters for Board representation. The agreement was disclosed in a Form 8-K filed with the US Securities and Exchange Commission.
The IAC Founder remains “confident” in his ability to fund the deal based on existing cash on hand and “preliminary conversations” with potential equity investors and financing sources.
Just days prior to Diller’s nonbinding proposal, Caesars Entertainment entered into a definitive agreement to be acquired by Fertitta Entertainment in an all-cash transaction valued at around $17.6bn.
The overall transaction figure consists of an $11.9bn assumption of Caesars' total debts, alongside a $5.7bn acquisition fee, topping a bid previously entered by Icahn Enterprises.
Caesars CEO Tom Reeg, CFO Bret Yunker, President & COO Anthony Carano and other members are expected to retain their roles and continue leading operations under the new business model.
MGM Grand Detroit appointed Terry Briggs as its new VP of Slot Operations on May 14, where he will oversee the property’s slot machine portfolio and evaluate opportunities to optimize the gaming floor
