MGM Resorts International shares jumped on Monday after Barry Diller’s People Inc. submitted a proposal to acquire the casino operator in a deal that values the company at approximately $18 billion, including debt.
People Inc., formerly known as IAC, already owns a 26.1% stake in MGM and has offered to acquire the remaining shares it does not own for $48.30 per share in cash.
The nonbinding proposal values MGM’s equity at roughly $12.4 billion and would take the company private if approved.
Following the announcement, MGM shares surged about 14% to $50.13, slightly above the offer price. Shares of People Inc. fell 1.2%.
People Inc. Chairman Barry Diller and former Chief Executive Joey Levin both serve on MGM’s board.
Diller says MGM is undervalued
In a statement accompanying the proposal, Diller argued that MGM’s assets are not being fully reflected in its public market valuation.
“We continue to believe the market materially undervalues the power and durability of MGM’s assets,” Barry Diller said. “We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”
In a letter to MGM’s board, Diller expanded on that view.
“We believe that MGM’s assets and businesses are not currently realizing their full potential in the public markets and that it will be difficult to correct this situation in MGM’s current form as a public company,” Diller wrote.
According to the proposal, People Inc. would own just over 50.1% of MGM following the transaction, while other investors would hold non-controlling minority stakes.
Diller said the company expects to finance the acquisition through a combination of cash on hand at both People Inc. and MGM, along with additional debt and equity funding.
He added that the company was already engaged in “preliminary conversations” with potential equity investors and financing sources.
MGM’s assets remain attractive despite industry challenges
Diller said People Inc. initially invested in MGM nearly six years ago because of the company’s unique combination of physical assets and digital growth opportunities.
He wrote that MGM represents “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.”
MGM owns more than a dozen properties on the Las Vegas Strip, six regional resorts across the United States, and significant operations in East Asia.
Diller also highlighted the company’s Las Vegas footprint in a shareholder letter earlier this year, describing the roughly 40% of the Strip controlled by MGM as “an entertainment nucleus” that cannot be replicated elsewhere.
The company’s digital operations have also shown growth.
BetMGM, MGM’s online sports betting joint venture with Entain, reported an 11% year-over-year increase in adjusted EBITDA during the first quarter.
Analysts see room for a higher offer
MGM has outperformed much of the gaming sector in 2026, with shares up about 20% year to date and nearly 38% over the past year.
The broader casino industry has faced headwinds from weaker Las Vegas visitation trends, growing competition from online sportsbooks such as DraftKings and FanDuel, and the rise of prediction markets including Kalshi and Polymarket.
Still, some analysts believe the proposed offer may represent only the opening stage of negotiations.
Mizuho analyst Ben Chaiken said the bid establishes a strong floor for MGM shares but may not be sufficient if Las Vegas fundamentals continue to improve.
“We think this puts a nice floor to the stock,” wrote Chaiken, who sees Las Vegas traffic increasing. “The proposed bid would represent 10.5% higher than where the shares closed last Friday. Assuming we are correct, that underlying Vegas is growing, the market may demand more than a 10% premium.”
Mizuho maintains an Outperform rating on MGM shares with a $59 price target.
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