MGM Resorts International will remain a standalone company after Barry Diller’s People Incorporated withdrew its proposal to take the casino operator private.
MGM said on September 23rd that a special committee of its board had spent several months negotiating with People over the proposal.
“The Board remains excited to continue to lead MGM Resorts as a standalone company,” said Paul Salem, chairman of MGM Resorts’ board.
Salem cited MGM’s Las Vegas and regional casinos and BetMGM as strengths.
“In addition, our international portfolio of MGM China and the significant opportunity ahead with MGM Osaka support a clear path to increasing shareholder value,” he said.
In a separate statement, People chairman and senior executive Barry Diller said: “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.”
People still holds 66.8 million MGM shares, or approximately 27 percent of the company. Diller expressed confidence in MGM’s management and said People remained “open to and interested in the possibility of a strategic transaction with MGM Resorts.”
People, formerly known as IAC, made its non-binding offer on June 1st, proposing $48.30 in cash for each MGM share it did not already own. The bid valued MGM at more than $18 billion, including debt.
At the time, analysts said a successful takeover could lead MGM Resorts to sell its stake in MGM China or its interest in the Osaka project.
