People Inc withdraws $18bn bid to acquire MGM Resorts

People Incorporated has withdrawn its potential $18bn takeover bid of MGM Resorts International – as confirmed by the operator’s Board of Directors – with People Inc Chairman Barry Diller stating “we didn’t feel the mix was coming together in the way we had hoped.”

The deal would have taken MGM Resorts private, increasing a gaming industry trend of private capital taking over some of its biggest operators.

MGM Resorts could have potentially joined fellow Las Vegas Strip operator Caesars Entertainment in undergoing a multi-billion-dollar takeover transaction. 

Caesars will now go private, unlike MGM, while other high-profile Las Vegas equivalents include The Venetian Las Vegas, which was sold by Las Vegas Sands to Apollo Global Management in 2022.

"There are lots of ingredients that go into a proposal of this kind on its way to completion. We didn't feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time. What is undimmed is our belief in the future of MGM Resorts. We continue to hold 66.8 million shares representing approximately 27% of MGM Resorts and have total confidence in both the management and the Company's prospects,” Diller said. 

"I want to thank the Special Committee and all the MGM Directors for giving us the time and consideration during the process. People Incorporated is doing just fine with its principal publishing business achieving its 11th quarter of growth with plenty of cash to both invest in its business and purchase its stock. 

“We at People Incorporated remain open to and interested in the possibility of a strategic transaction with MGM Resorts and look forward to considering a range of alternatives.”

People Inc originally proposed the takeover bid on June 1, seeking to acquire all public shares of MGM Resorts. The operator confirmed a “special committee” was formed to participate in negotiations with People Inc to “advance the interests of its shareholders.” 

MGM Resorts Board of Directors Chairman Paul Salem added: "The Board remains excited to continue to lead MGM Resorts as a standalone company. Our leading position in Las Vegas, our best-in-class regional properties and BetMGM's continued momentum highlight the value we bring to our shareholders.

“In addition, our international portfolio of MGM China and the significant opportunity ahead with MGM Osaka support a clear path to increasing shareholder value.”

While featuring a slightly lower figure than $18bn, MGM Resorts was also fined $50,250 by the Pennsylvania Gaming Control Board (PGCB) on September 23 for failing to “timely” file a principal licensing application. 

MGM Resorts reached a consent agreement with the Board’s Office of Enforcement Counsel for the September 23 incident, while German-based firm CountR GmbH was fined $50,000 by the PGCB for an unapproved change of license control and failure to pay required licensing fees.