MGM Resorts International receives all-cash takeover bid from People Inc

MGM Resorts International receives all-cash takeover bid from People Inc MGM Resorts International receives all-cash takeover bid from People Inc Proactive uses images sourced from Shutterstock Proactive Mon, June 1, 2026 at 6:08 PM GMT+2 3 min read MGM IAC MGM Resorts International (NYSE:MGM)  has received a non-binding, all-cash takeover proposal from American billionaire and media mogul Barry Diller’s People Inc, formerly IAC, (NASDAQ: IAC) to acquire the 73. 9% of the company it does not already own at $48. 30 per share.

People Inc said the offer implies an equity value of approximately $18 billion for the remaining stake and represents a 24. 1% premium to MGM’s 30-day volume-weighted average price through May 29, 2026, as well as a 10. 6% premium to the latest closing price.

Shares of MGM jumped 15% on the bid to about $50, while IAC stock was little changed at about $45. The company already owns a 26. 1% stake in MGM and said it would fund the transaction using a combination of existing cash, MGM’s balance sheet, and additional debt and equity financing commitments.

Under the proposed structure, People Inc would hold just over 50. 1% of MGM post-transaction, with other investors, including potentially existing MGM shareholders, holding minority stakes while People Inc maintains control. Diller, People Inc CEO, said the investment thesis is based on MGM’s physical asset base and digital growth potential, describing the business as one that is difficult to replicate and “undervalued by the market.

” He also said the proposal would give shareholders an opportunity to de-risk through an immediate cash exit, and expressed confidence in engaging with MGM’s board. MGM confirmed receipt of the proposal and said its board will review the offer in consultation with financial and legal advisers. The company said shareholders do not need to take any action at this time and cautioned that there is no assurance the proposal will lead to a transaction.

Jefferies analysts described the bid as a positive read-through for MGM and the broader gaming sector, noting it follows recent M&A activity in the space, including Caesars-related developments that they view as a catalyst for further consolidation. The brokerage said additional regional gaming assets could remain in play across the sector. According to Jefferies, the offer values MGM at approximately 9.

8 times their 2027 estimated adjusted EBITDA, or 5. 3 times adjusted EBITDAR, and reflects a roughly 0. 7x EBITDAR premium relative to Caesars’ transaction metrics, which they view as broadly justified.

The analysts also noted that IAC has been building its stake in MGM since 2020, when it initially acquired about 12% of the company. Through a combination of additional purchases and a reduction in MGM’s share count, its ownership has risen to 26. 1%, making it the largest shareholder.

In 2024, MGM and IAC agreed to cap voting rights at 25. 73%, with excess shares required to vote in line with other shareholders. Jefferies added that while the bid could act as a broader catalyst for gaming M&A, MGM’s willingness to engage remains uncertain given management’s long-standing view that the company is undervalued.

The analysts also flagged potential structural considerations, including implications for MGM’s BetMGM joint venture with Entain, should a full takeover proceed.