MGM Resorts to Proceed as Standalone Entity After People Inc Abandons Four-Month Takeover Negotiations

MGM Resorts International will continue as a standalone company after People Inc withdrew its proposal to acquire all remaining public shares and take the casino group private. The June 1 offer had valued MGM Resorts at more than US$18 billion including debt following four months of negotiations.

Paul Salem, MGM Resorts chairman, stated that the board remains excited to lead the company independently. Salem pointed to the group’s strengths across its core markets and operations.

MGM’s Portfolio and Growth Drivers

Salem highlighted the leading position in Las Vegas, best-in-class regional properties, and BetMGM‘s continued momentum. He added that the international portfolio of MGM China and the significant opportunity with MGM Osaka support a clear path to increasing shareholder value.

The JPY1.51-trillion (US$9.54-billion) MGM Osaka project is under construction with local partners and due to open in 2030. MGM Resorts shares closed at US$37.85, against the offered US$48.30 per share that represented a 27.6 percent premium.

People Inc’s Response and Stake Retention

Barry Diller, People Inc’s chairman and senior executive, said the ingredients for the proposal did not come together as hoped. Diller added that the belief in MGM Resorts’ future remains undimmed and confirmed holding 66.8 million shares representing approximately 27 percent of the company with total confidence in management and prospects.

Diller noted that People Inc is achieving its 11th quarter of growth in its principal publishing business with plenty of cash to invest and repurchase stock. As reported by GGRAsia, the withdrawal followed negotiations by MGM Resorts’ special board committee to advance shareholder interests.

The outcome leaves MGM Resorts free to pursue its existing strategy without the immediate pressure of privatization. How this standalone path influences capital allocation and market positioning in the years ahead will draw close attention from operators and investors alike.

Reporting: GGRAsia

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