Media mogul Barry Diller’s People offers to buy MGM Resorts for over $18bn

Key points

• Media mogul Barry Diller’s People Inc said on Monday it had proposed to buy MGM Resorts, valuing the casino operator at more than $18bn.
• The offer comes just weeks after Diller, the digital media company’s chair, told shareholders in a 28 April letter that People would sharpen its focus on its MGM stake, calling the stock “wildly undervalued”.
• People currently owns 26.1% of the outstanding common stock of MGM.
• It is planning to bid $48.30 a share in cash for the remaining company, representing a premium of about 10.6% to MGM’s Friday close of $43.67. MGM’s shares rose more than 10% in premarket trading, while those of People – renamed from IAC in April – rose nearly 3%.
• MGM Resorts did not immediately respond to a Reuters request for comment.