MGM Resorts Falls 11% After Diller's People Inc. Withdraws Takeover Bid

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Summary · why it matters

Barry Diller's People Inc. withdrew its takeover offer for MGM Resorts, sending the casino operator's shares down 11% in after-hours trading while People rose 4%. People had disclosed in June a non-binding proposal to acquire all outstanding MGM shares it did not already own for $48.30 per share in cash. Diller said the mix of ingredients for the proposal was not coming together as hoped, but that he remains open to and interested in a strategic transaction with MGM and looks forward to considering a range of alternatives. People continues to hold 66.8 million MGM shares, roughly 27% of the company, and Diller said his belief in MGM's future is undimmed. MGM confirmed the withdrawal, and board chairman Paul Salem said the board remains excited to lead MGM Resorts as a standalone company, citing its Las Vegas position, regional properties and BetMGM's momentum.

Impact on assets 3

Consumer Discretionary▼
MGM Resorts International
MGM
▼ NegativeCapitalrelevance

People Inc. withdrew its $48.30/share takeover offer for MGM, removing the buyout premium and sending shares down 11%.

Communication Services▲
People Incorporated
PPLI
▲ PositiveCapitalrelevance

People Inc. withdrew its takeover bid for MGM, a strategic decision by Diller's firm that lifted its shares 4%.

Off-coverage companies 1

BetMGMi
Private± Mixedrelevance