Barry Diller Plans $18 Billion Bid for MGM Resorts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: CNBC
- Acquisition Proposal: Barry Diller's People Inc. is preparing a cash offer of $48.30 per share to acquire MGM Resorts, valuing the deal at over $18 billion, indicating strong confidence in the company's future growth potential.
- Stock Market Reaction: Following the acquisition news, MGM's stock rose approximately 14% in premarket trading, reflecting positive market expectations for the deal, while shares of Diller's firm also increased by 4%, showcasing investor optimism.
- Board Dynamics: Diller, a board member of MGM, will recuse himself from any board vote regarding the potential deal, ensuring transparency and fairness in the transaction, which may enhance investor trust in the process.
- Ownership Background: People Inc., formerly known as IAC, holds a 26.1% stake in MGM, and this acquisition proposal not only represents a further consolidation of its investment but could also bring new strategic direction and resource support to MGM.
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Analyst Views on MGM
Wall Street analysts forecast MGM stock price to fall
14 Analyst Rating
5 Buy
7 Hold
2 Sell
Hold
Current: 48.360
Low
29.00
Averages
40.31
High
56.00
Current: 48.360
Low
29.00
Averages
40.31
High
56.00
About MGM
MGM Resorts International is a global gaming and entertainment company with national and international destinations featuring hotels and casinos, meetings and conference spaces, incredible live and theatrical entertainment experiences, and a range of restaurants, nightlife and retail offerings. Its segment includes Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. Las Vegas Strip Resorts consists of casino resorts: Aria, Bellagio, The Cosmopolitan of Las Vegas, MGM Grand Las Vegas, Mandalay Bay, Luxor, New York-New York, Excalibur, and Park MGM. Regional Operations consists of various casino properties: MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica, Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York, and others. MGM Digital is its online gaming portfolio which consists of LeoVegas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Legal Compliance Review: Johnson Fistel is assessing whether MGM's directors are fulfilling their fiduciary obligations to public shareholders, particularly regarding any misconduct in related-party transactions that could harm shareholder rights.
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