People Inc., the publicly traded company formerly called IAC, has offered to buy out the remaining stake in MGM Resorts International that it doesn't already own (roughly 74%) for $48.30 per share. Why it matters: IAC, which rebranded to People Inc. in April, has spent the past five years building up digital companies and spinning them out once they mature. Until now, it hasn't looked to replace most of those entities with new investments in its portfolio.Flashback: In March, People Inc. (then IAC) announced a deal to sell Care.com to a private investment group.It spun out its home services platform Angi last year and made former IAC CEO Joey Levin executive chair of that asset.It spun out Match Group in 2020 and Vimeo in 2021.Zoom in: MGM Resorts International is currently publicly traded. The proposal would make MGM a private subsidiary of People Inc.The deal would value MGM at $18 billion, including debt.People Inc. said it would fund the all-cash deal with its own money, as well as additional debt and equity funding commitments.It plans to own just over 50.1% of the equity of the company, with other investors — which may include existing shareholders of MGM — holding minority interests.By the numbers: The takeover offer puts a premium of 24.1% to the volume-weighted average price of MGM common stock over the 30 trading days ending last Friday, and a 10.6% premium to the stock's closing price that day.What they're saying: "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," People Inc. chair Barry 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."In a letter sent Monday to MGM's board, Diller said People Inc. will be a good steward for MGM's assets, "given our large stake in the business today and our deep familiarity with the business."What's next: Diller's letter is nonbinding and a deal may not materialize. Diller assured MGM's board that People Inc. "has no intention to sell our existing ownership stake in MGM, or to pursue or vote in favor of any merger or other similar extraordinary transaction that would result in a change in control to another party or dilute in any meaningful respect our economic and voting interest in MGM."