Barry Diller Offers $48.30 Per Share to Take MGM Private in $18 Billion Deal

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Summary · why it matters

Billionaire Barry Diller, through his company People, has made a non-binding offer to acquire the remaining shares of MGM Resorts International he does not already own for $48.30 per share in cash, valuing the casino giant at roughly $18 billion including debt. Diller already holds about 26.1% of MGM, and the proposal would take the company private, delisting it from the stock market. MGM's board is reviewing the offer, with Stifel analyst Steven Wieczynski arguing the bid undervalues the company and that the board could push for a higher price; MGM shares were trading at $48.62, above the offer price. The company owns major Las Vegas Strip properties such as Bellagio, MGM Grand, Aria, and Mandalay Bay, and has a growing digital gambling presence through BetMGM. If the deal falls through, investors would rely on MGM's fundamentals, which include first-quarter revenue growth of over 4%, a 29% decline in adjusted earnings to $0.49 per share, and a debt-to-equity ratio of 1.93.

Impact on assets 4

Consumer Discretionary▲
MGM Resorts International
MGM
± MixedCapitalrelevance

MGM received a buyout offer at $48.30/share, but shares trade above that, and analyst says bid undervalues company; outcome uncertain.

Communication Services▲
People Incorporated
PPLI
▲ PositiveCapitalrelevance

Diller's offer to take MGM private is a capital event for People Incorporated, the acquiring entity.

Financials▲

Off-coverage companies 1

BetMGMi
Private± MixedCapitalrelevance

BetMGM is MGM's digital gambling arm; the buyout offer could affect its future, but no specific details.