LAS VEGAS (KSNV) — Another major casino-resort operator in Nevada could soon be changing hands.
Barry Diller’s People Inc. confirmed it has submitted an offer to buy out MGM Resorts in a deal that would value the Las Vegas-based company at $18 billion.
People Inc. already owns a 26% stake in MGM. The proposal values the remainder at $48.30 per share.
“We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities. That conviction has only strengthened over time,” Diller, the chairman and senior executive for People Inc., said in a news release.
“We continue to believe the market materially undervalues the power and durability of MGM’s assets. We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”
People Inc. is a digital media company that operates multiple media and magazine brands, including People magazine, Better Homes & Gardens and LIFE.
In a news release, MGM Resorts acknowledged that it received People Inc.’s offer.
“The Company’s Board of Directors, in consultation with its financial and legal advisors, will carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the Company and all of its shareholders,” the news release states.
The takeover offer comes days after Fertitta Entertainment agreed to purchase Caesars Entertainment for $5.7 billion in cash.
That deal is subject to shareholder and regulatory approval before closing.
The Culinary Union released a statement Monday saying it will remain committed to protecting its members’ rights, should any sale agreement materialize.
“While this proposal is still in the early stages, Culinary Union contracts provide strong protections for workers through any potential ownership change,” union Secretary-Treasurer Ted Pappageorge said in a statement. “We’ve had a long-standing positive relationship with MGM Resorts and if this transaction moves forward, we expect that relationship to continue.”
