People Inc. withdraws proposal to acquire MGM Resorts

  • People Inc. withdrew its proposal to acquire MGM Resorts’ publicly held shares.
  • People offered $48.30 per share in cash for MGM’s remaining shares.
  • People owns approximately 27% of MGM, which will continue operating independently.

People Inc. has withdrawn its proposal to acquire all publicly held shares of MGM Resorts International, after offering $48.30 in cash for each remaining share. The June proposal valued the transaction at more than $18 billion, according to Reuters, while an earlier report had valued it at $12.4 billion. People already owns approximately 27% of MGM, or 66.8 million shares. MGM shares fell 8% after the bell, compared with a 2.70% decline cited in the earlier report. MGM will continue operating as a standalone company. Barry Diller viewed MGM as undervalued and saw a larger stake as a way for People to diversify beyond publishing businesses including PEOPLE and Food & Wine.

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