- M&A
- September 25, 2026
- 4 minutes read
Media Mogul Barry Diller Drops $18B MGM Resorts Bid
People Inc. (NASDAQ: PPLI), the digital media publisher controlled by mogul Barry Diller, has dropped its bid to buy out…
People Inc. (NASDAQ: PPLI), the digital media publisher controlled by mogul Barry Diller, has dropped its bid to buy out casino operator MGM Resorts (NYSE: MGM). People Inc. currently owns 27% of MGM Resorts and proposed acquiring the remaining 73% in a deal valuing the casino operator at $18bn.
Diller-controlled People Inc. (previously known as IAC) began buying shares in MGM Resorts in 2020, when COVID-19 pandemic closures and travel restrictions sank the casino operator’s shares. Diller began building a stake relatively cheaply and, in June 2026, offered to buy the whole company for $48.30 in cash per share, valuing it at $18bn ($12.4bn in equity plus assuming $5.6bn of its debt).
- People Inc. has a market value of under $3bn and reported $1.1bn in cash holdings as of August 2026, so its proposed MGM Resorts buyout would have relied on major debt financing. It seems Diller didn’t put together a suitable financing arrangement and decided to walk away.
- “There are lots of ingredients that go into a proposal of this kind on its way to completion. 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 in a press statement announcing the bid withdrawal.
- Now, in an unusual turn of events, the Wall Street Journal reports that MGM is discussing a bid to acquire People Inc.
People Inc.’s 27% stake in MGM Resorts is currently worth $2.3bn (as of writing), nearly equal to the digital media publisher’s $2.7bn market value. This valuation suggests investors attribute most of People Inc.’s value to its MGM Resorts stake and little to its numerous digital media assets. Acquiring People Inc. seems like a way for MGM Resorts to buy back a valuable stake and get some media assets at a bargain.
“We at People Incorporated [People Inc.] remain open to and interested in the possibility of a strategic transaction with MGM Resorts and look forward to considering a range of alternatives,” Diller notably said in the press statement announcing the withdrawal.
