Barry Diller is making a major play in the casino and gaming business.
The mogul’s holding company People Incorporated is proposing to acquire MGM Resorts in a deal that valued the casino giant at $18 billion. People Inc. (formerly IAC) is already MGM’s largest shareholder, holding more than 26 percent of its stock. It is proposing to buy the remaining 24.9 percent for $48.30 per share.
In a letter to MGM’s board, Diller wrote that the deal would be funded by cash on hand, as well and debt and equity commitments. Should the deal be completed, People would own just over 50 percent of the company, and be its controlling shareholder, with minority investors joining.
He also wrote that he expects to keep MGM’s current management team.
“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,” said Diller, chairman and senior executive of People Incorporated 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.”
