Barry Diller's People withdraws bid for MGM Resorts
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An exterior view of Park MGM hotel and casino in Las Vegas, Nevada, U.S., September 13, 2023. REUTERS/Bridget Bennett
Sept 23 (Reuters) - Media mogul Barry Diller's People Inc on Wednesday withdrew its proposal to purchase all public shares of MGM Resorts International, sending the casino operator's shares down 8% in extended trading.
In June, People, which currently owns about a 27% stake in MGM, had proposed to buy the remaining shares, valuing it at more than $18 billion. It had offered $48.30 a share in cash.
People, formerly known as IAC, began building its stake in MGM in 2020, when the casino operator's shares were battered by closures and travel restrictions due to the COVID-19 pandemic.
MGM owns marquee properties that account for roughly 40% of the Las Vegas Strip. It, however, has been struggling with sluggish footfalls, and has relied on growth in its China assets, including Macau, and digital operations in recent quarters.
In a separate statement on Wednesday, MGM said the "board remains excited to continue to lead MGM Resorts as a standalone company."
For Diller, who viewed MGM as undervalued, the increasing stake offered an opportunity for People to diversify beyond the core media business that includes publications such as its namesake magazine and Food & Wine magazine.
"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.
People, however, remains open to and interested in the possibility of a strategic transaction with MGM and looks forward to considering alternatives, he said.
The media mogul's MGM pursuit echoes his earlier bet on travel and leisure through Expedia, which IAC acquired in 2002 before building and later spinning off the online travel company.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Maju Samuel and Shilpi Majumdar)
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