Barry Diller’s People Inc. is offering to buy the rest of MGM Resorts after acquiring a 26.1% stake in the Las Vegas casino and resort operator, valuing the business at more than $18 billion.
People Inc., formerly known as IAC and owner of publications including People magazine, began investing in MGM Resorts about six years ago, according to a company statement on Monday. The company is offering $48.30 per share in cash, or a 10.6% premium to MGM Resorts’ price on Friday.
In a statement, Diller said MGM Resorts, which owns Las Vegas hotels and casinos, including the Bellagio and Luxor, is attractive because artificial intelligence isn’t likely to replace the kind of experiences the properties offer. If the deal moves forward, MGM Resorts would become a private company controlled by People Inc.
“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,” the media mogul said in the statement.
MGM Resorts did not immediately respond to a request for comment.
People Inc. owns 26.1% of MGM Resorts’ outstanding stock, a stake valued at $2.9 billion, according to FactSet. Diller’s company said it expects to complete the transaction with cash on hand, as well as additional debt and equity funding commitments.