In a rather surprising twist, MGM Resorts International has begun weighing a potential takeover bid of People Incorporated, just two days after the media organization withdrew its $18bn acquisition proposal of the operator.
While financial details of the transaction have not been released, People Inc maintains an approximate valuation of $2.7bn, as well as owns publications such as People magazine, Food & Wine and Southern Living.
People Inc Chairman Barry Diller originally submitted his $18bn takeover proposal of MGM Resorts in June, but stated “we didn’t feel the mix was coming together in the way we had hoped” after withdrawing the offer on September 23.
The deal would have taken MGM Resorts private, potentially joining fellow Las Vegas Strip operator Caesars Entertainment in undergoing a multi-billion-dollar takeover transaction.
"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,” Diller said.
"I want to thank the Special Committee and all the MGM Directors for giving us the time and consideration during the process.”
Perhaps more notable than believed at the time was Diller also stating that People Inc “remain(s) open to and interested in the possibility of a strategic transaction with MGM Resorts and look(s) forward to considering a range of alternatives.”
Whether a takeover of People Inc by MGM Resorts was discussed prior to Diller’s proposal being withdrawn has not been confirmed, but the media organization still maintains a 27% stake in the operator.
MGM Resorts formed a “special committee” to participate in negotiations with People Inc and could submit its own proposal within the "coming days."
MGM Resorts launched its first-ever beachfront BetMGM sportsbook location at the Tailgate Beach Club on September 23, converting one of the 23 cabanas offered at the sports-focused site
