On the heels of a major deal featuring Tillman Fertitta acquiring Caesars Entertainment, another major casino investor is looking to purchase that company’s main competitor.
Barry Diller’s People Inc. has offered $48.30 per share in cash, around $18 billion, for MGM Resorts. The figure represents a 24% premium on the stock’s 30-day period as of May 29. People already owns just over 26% of MGM, and Diller sits on the company’s board of directors.
Like Fertitta, Diller believes casino operations offer a growth opportunity despite a rough summer for Las Vegas properties in 2025. The Caesars deal and MGM offer come as the city has bounced back over the last few months.
“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,” the People Inc. chairman and senior executive said.
“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.”
People Would Take On $5.6 Billion In Debt
Like Fertitta and Caesars, Diller would be taking on a considerable amount of debt if the deal is approved by the MGM Board of Directors. The acquisition would value MGM at $12.4 billion, with $5.6 billion additional in debt, according to the Wall Street Journal.
The billionaire’s current stake in MGM is valued at $2.9 billion. Funding for the deal would come via existing cash on hand, additional debt, and equity funding. People expects to own 50.1% if the deal is approved, giving the company control of the company.
On the Las Vegas Strip, MGM owns about 40% of casino operations and Caesars controls about 20%. MGM also operates other properties around the world, a total of 31 hotel and gaming destinations globally. Like the proposed Caesars deal, MGM would become a private company under People Inc.
“I believe this transaction would deliver significant benefits to the shareholders of both companies,” Diller said. “MGM shareholders would be given the opportunity to de-risk their investment and realize immediate, attractive value in cash for their shares. We are confident in our ability to execute on a transaction promptly with engagement from the MGM Board of Directors.”
Diller Has Long History In Entertainment Industry
Diller has a deep history in the entertainment industry, formerly working as an executive at ABC and later as chairman and CEO of Paramount Pictures. Roles as an executive at other broadcaster networks followed, including Fox.
In 1997, he acquired the USA cable network and invested in numerous other ventures in the 2000s, such as Match.com and Vimeo. He has served on the board and as chairman for numerous companies through the years.
Late last year, MGM dropped out of the race for a New York City casino license in October. The company also reached a $45 million settlement with the Federal Trade Commission last year over a 2023 data breach.
