MGM has set up a board committee and engaged advisers to evaluate a proposal Diller made on June 1 to buy the remaining 26% of the company for US$48.30 a share, the Journal reported, citing people familiar with the matter. Such a deal would value MGM Resorts, the casino operator behind Bellagio and Mandalay Bay, at about US$12.4 billion. Bankers advising Diller in his pursuit of MGM include those at JPMorgan Chase & Co, who are working to line up financing for the deal, according to the report.
(July 11): MGM Resorts International is engaged in deal talks with Barry Diller’s People Inc after the entertainment mogul offered to acquire the part of the casino company he doesn’t already own, the Wall Street Journal reported.
MGM Resorts shares closed on Friday at US$46.88, slightly below the offer price.
The MGM holding represents one of People’s main businesses, along with a digital publishing arm anchored by the namesake celebrity magazine.
Diller first invested in MGM Resorts in 2020 when IAC bought about a 12% stake for roughly US$1 billion during the pandemic. The investment was made just weeks after IAC spun off Match.com at a time when casino and travel stocks were under pressure. Back then, Diller was particularly interested in the fast-growing online betting market, which represented a tiny portion of IAC’s revenue. MGM co-owns the sports betting and online gambling venture BetMGM with UK gaming group Entain. BetMGM is one of the main US online sports betting sites, competing with FanDuel and DraftKings.
Discussions between the parties heated up this month, the Journal reported. There are no guarantees a deal will ultimately come together.
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