People Inc. said to be preparing $18bn bid for MGM Resorts, shares surge

(Sharecast News) - Shares of MGM Resorts surged on Monday after Barry Diller's People Inc. said it has submitted a non-binding proposal to buy the casino giant for $48.30 per share in cash.

The price represents a premium of 10.6% to the most recent closing share price.

Billionaire media mogul Barry Diller, chairman of People Inc - which currently owns a stake of 26.1% in MGM - said: "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.

"We continue to believe the market materially undervalues the power and durability of MGM's assets. 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."

Diller said the deal would deliver "significant" benefits to the shareholders of both companies.

"MGM shareholders would be given the opportunity to de-risk their investment and realise immediate, attractive value in cash for their shares," he said. "We are confident in our ability to execute on a transaction promptly with engagement from the MGM board of directors."

At 1450 BST, MGM shares were up 12.9% at $49.32.