People Inc. Makes $18 Billion Bid to Acquire MGM Resorts

People Inc., publisher of more than 40 magazines including PEOPLE, Food & Wine, Travel + Leisure, has made a bid to acquire MGM Resorts. 

Barry Diller, chairman and senior executive of People, submitted a letter to MGM on June 1, proposing to buy the company’s remaining shares that People does not already own for $48.30 per share, reportedly valuing the MGM at $18 billion, according to CBS News. 

People started investing in MGM in 2020 and currently owns 26.1% stock in the company. If MGM accepts the offer, People expects to own just over 50.1% of the company equity and to keep current MGM management in place. 

“We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities. That conviction has only strengthened over time,” Diller said in a statement. “We continue to believe the market materially undervalues the power and durability of MGM’s assets. We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”   

The proposal letter is a non-binding expression of interest, and People reserved the right to modify the terms at any time. MGM acknowledged receipt of the bid and said the company will carefully review the proposal before further action is taken. 

“The company cannot provide assurances that such proposal or any subsequent proposal will result in an agreement or a transaction being reached or, if so, as to the timing, price or other terms and conditions of any such agreement,” MGM said in a statement. “The company remains focused on advancing its position as the world’s premier gaming entertainment company.” 

MGM operates 13 Las Vegas Strip hotels, including The Bellagio, MGM Grand, and Mandalay Bay, as well as other resorts in the U.S., China, and Japan. The news comes about a week after Fertitta Entertainment announced it would acquire Caesars Entertainment, another big player in Las Vegas, for $17.6 billion.