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People Inc., the media company chaired by Barry Diller, announced last week it has submitted a non-binding proposal to acquire all remaining shares of MGM Resorts International it does not already own, valuing the casino and resort operator at more than $18 billion, including debt.
The offer is priced at $48.30 per share in cash for the 73.9% of MGM Resorts that People Inc. does not currently own. People Inc. holds a 26.1% stake in MGM Resorts and occupies two seats on the casino operator’s board, including one held by Diller himself. The proposed deal would push People Inc.’s ownership past a controlling majority.
Back-to-back casino consolidation deals
The bid arrives alongside a separate blockbuster deal reshaping the Las Vegas Strip. Casino mogul Tilman Fertitta entered into a definitive agreement to acquire Caesars Entertainment for over $5.7 billion — an all-cash transaction valued at approximately $17.6 billion, including the assumption of roughly $11.9 billion in debt. Fertitta, who owns the restaurant chain Landry’s, the Golden Nugget casino and the NBA’s Houston Rockets, is making the acquisition through his holding company, Fertitta Entertainment.
Both deals come as the casino industry navigates a period of transition. Brick-and-mortar properties have faced headwinds from near-universal online sports betting access, with several operators reporting weaker-than-expected foot traffic this year.
From pandemic bargain-buying to a full takeover bid
People Inc. began building its MGM stake during the pandemic lockdowns of 2020, when travel restrictions and casino shutdowns depressed the company’s share price. While a media executive pivoting toward casinos and hospitality may seem an unlikely move, Diller has a track record of transformative investments in the travel and leisure sector. In 2002, he acquired Expedia, developing it into a global travel platform under IAC before spinning it off.
In a PR Newswire statement, Diller framed the MGM acquisition as a bet on assets resistant to technological disruption:
“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.”
In April 2026, IAC announced it would change its name to People Inc., saying the company would focus on two core assets: People publishing and its MGM Resorts holdings. Diller described the combination of a “mostly virtual media business” and MGM’s “very hard assets” as a way to balance the company’s portfolio against an unpredictable economic environment.
MGM’s board confirmed June 1 that it received the proposal and said it will review the offer with financial and legal advisors.
Why Diller sees MGM as the Strip’s most undervalued bet
According to news by Reuters, in his shareholder communications, Diller has noted that MGM’s properties account for roughly 40% of the Las Vegas Strip — a concentration of premium resorts he considers difficult to replicate and, in his words, “wildly undervalued” by the market.
MGM’s Las Vegas Strip portfolio includes Aria, Bellagio, The Cosmopolitan, MGM Grand, Mandalay Bay, Luxor, New York-New York, Park MGM and Excalibur. Beyond the Strip, the company operates regional casinos across the U.S. and holds a majority stake in MGM China, which runs properties in Macau. MGM reported record first-quarter 2026 consolidated net revenues, driven primarily by MGM China and its digital division.
BetMGM reached a sustained EBITDA inflection point in 2025 and distributed its first cash dividend of $270 million in the fourth quarter of that year, cementing its standing as one of the company’s fastest-growing businesses. The platform ranks among the top three U.S. online casinos and sports betting operators, holding roughly 19% market share.
