Barry Diller Withdraws $18 Billion Bid for MGM Resorts

Barry Diller’s People Inc., formerly IAC, has withdrawn its proposal to acquire the remaining publicly traded shares of MGM Resorts International after negotiations failed to produce an acceptable structure. The abandoned offer was for $48.30 per share in cash and valued MGM at more than $18 billion; People owns roughly 26% to 27% of MGM, or about 66.8 million shares. Reports said the complex transaction faced difficulty securing additional equity financing, while MGM’s board reportedly viewed the offer as undervaluing the company. People said it continues to believe in MGM’s prospects and remains open to future strategic alternatives. MGM said it is committed to operating independently, citing its Las Vegas and regional properties, BetMGM, MGM China and the opportunity presented by MGM Osaka. MGM shares fell sharply in after-hours trading after the withdrawal, while People shares also declined modestly.