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Barry Diller's People Inc. has submitted a nonbinding proposal to acquire the remaining stake in MGM Resorts it does not already own, in a deal that would value the casino company at $18 billion and take it private.
According to Reuters, People Inc. — the company formerly called IAC, which completed its rebranding in April — holds a 26.1% stake in MGM. At $48.30 per share in cash, the proposed price would exceed MGM's Friday close by about 10.6% and sit roughly 30% above its volume-weighted average price for the preceding 90-day period, The New York Times reported.
Premarket trading on Monday saw MGM shares climb over 10%, with People Inc. shares also ticking up by nearly 3%, Reuters noted.
Barry Diller sits on MGM's board and would recuse himself from any board vote on a potential deal, according to CNBC. The proposal has not yet been finalized and could be delayed or scrapped, according to the Times.
