People Inc. offers $18 billion to take MGM Resorts private

Media mogul Barry Diller has proposed taking MGM Resorts International private in an $18 billion deal that would consolidate his control over one of the world's largest casino operators. Diller's holding company, People Incorporated, submitted a non-binding offer on Monday to acquire the roughly 74% of MGM it does not already own for $48.30 per share in cash.

The proposal represents a premium of approximately 10.6% over MGM's closing price last Friday. Following the announcement, MGM's stock price surged more than 10% in pre-market trading, at times exceeding the offer price, a signal some investors anticipate a higher bid or a competitive process.

People Incorporated, which completed a rebranding from IAC in April, is already MGM's largest shareholder with a 26.1% stake. Diller, who serves as chairman of People and sits on MGM's board, stated he would recuse himself from any board deliberations regarding the proposal. In a letter to the MGM board, he outlined that the transaction would be financed through a combination of existing cash at both companies and additional debt and equity commitments. If completed, People would own just over 50% of MGM's equity and assume...