People Inc. withdraws bid to acquire MGM Resorts

People Inc. has withdrawn its proposal to acquire the MGM Resorts shares it does not already own, ending its effort to take the casino operator private for now. MGM said it would continue as a standalone company. People retains a stake of about 27%, according to chairman Barry Diller. People’s June proposal offered $48.30 in cash for each MGM share it did not own. Reports placed the proposed transaction’s value at about $18 billion. Diller said the elements needed to complete the deal were not coming together as hoped, and that People would not pursue the transaction at this time. Neither company has publicly identified the specific issues that prevented an agreement. Diller said People continues to hold 66.8 million MGM shares and remains confident in the company’s management and prospects. He also said People remains open to considering strategic alternatives with MGM, but did not announce a specific next proposal or timetable. MGM Chairman Paul Salem said the board remained committed to leading the company as a standalone business. He pointed to MGM’s Las Vegas operations, regional properties, digital business and international portfolio as parts of its strategy.