MGM Resorts International (NYSE:MGM) shares are trading lower after People Inc. announced it withdrew its proposal to purchase all public shares of the company.
- MGM Resorts stock is trading at depressed levels. Where are MGM shares going?
Diller’s People Drops Pursuit of MGM Acquisition
According to Reuters, media mogul Barry Diller‘s People, formerly known as IAC, had proposed in June to buy all remaining MGM shares it didn’t already own, valuing the company at more than $18 billion in a $48.30-per-share cash offer. People currently owns approximately 27% of MGM, a stake it began building in 2020 when the casino operator’s shares were battered by COVID-19-related closures and travel restrictions.
“We didn’t feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time,” Diller said, adding that People remains open to and interested in a potential strategic transaction with MGM going forward.
MGM Reaffirms Standalone Strategy
In a separate statement, MGM said its “board remains excited to continue to lead MGM Resorts as a standalone company.” MGM owns marquee properties accounting for roughly 40% of the Las Vegas Strip, but has faced sluggish foot traffic in recent quarters, leaning on growth in its China assets, including Macau, and digital operations. Diller’s pursuit of MGM echoes his earlier bet on Expedia, which IAC acquired in 2002 before later spinning it off.
MGM Shares Fall
MGM Price Action: At the time of publication, MGM shares are trading 10.54% lower at $33.86, according to data from Benzinga Pro.
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