Barry Diller Withdraws $18 Billion MGM Resorts Bid

People Inc., formerly known as IAC, has officially withdrawn its proposal to acquire MGM Resorts International. The potential transaction had been valued at approximately 18 billion dollars, leaving the prominent casino operator to continue operating as a publicly traded company.

The investment firm previously built up a 27 percent stake in MGM starting in 2020 when pandemic-related disruptions depressed share prices, and it had been preparing a bid for the remaining shares. However, People Chairman and Senior Executive Barry Diller explained that the circumstances simply did not align at this moment

• People Inc. pulled out of the MGM Resorts buyout proposal
• Retains the 27% equity stake accumulated since 2020
• MGM continues operations as a standalone public company

Meanwhile, the MGM Resorts board stated that they remain enthusiastic about leading the company as an independent entity. Barry Diller, who serves on MGM's board and previously founded major travel brands including Expedia, Hotels.com, Tripadvisor, and Hotwire, noted that People stays interested in pursuing strategic opportunities down the line.

The timing of the withdrawal coincides with shifting market dynamics in Nevada. MGM controls 40 percent of hotel rooms along the Las Vegas Strip, where demand has cooled particularly among budget-conscious travelers. Strip-wide occupancy remained flat during the second quarter, while average daily rates fell by 4 percent.

Stock photo for illustration only, not from the actual event

Source: Skift