MGM Resorts Shares Plunge 10% as Barry Diller Withdraws $18 Billion Buyout Bid

Shares of MGM Resorts International plunged 10% on Thursday after media mogul Barry Diller’s People Inc withdrew its more than $18 billion proposal to acquire the casino operator. MGM shares fell to $33.90, their lowest level in seven months, erasing all gains recorded since People Inc announced its offer in June. The company, which already owns 27% of MGM, had proposed purchasing the remaining shares at $48.30 apiece.

The withdrawal came as investor enthusiasm for the proposed acquisition gradually weakened, with MGM shares falling 27% from their 18-year high in June through Wednesday’s close. Analysts at Mizuho Securities said they had doubts that the $48-per-share offer would secure the MGM board’s approval, while Truist Securities suggested the subsequent stock decline could reflect investors exiting positions tied to the deal. People Inc did not provide a specific reason for withdrawing the proposal, with Diller stating that the proposed transaction was not coming together as hoped.

MGM Resorts has experienced uneven growth, with sluggish customer footfall in its key US market contrasting with stronger performance in its digital operations and Chinese assets, including Macau. The casino operator owns prominent properties accounting for roughly 40% of the Las Vegas Strip. The proposed acquisition would have expanded People Inc’s business beyond its traditional media operations, which include People magazine and Travel + Leisure. The withdrawal marks the second major take-private proposal involving a casino operator this year, following Tilman Fertitta’s agreement to acquire Caesars Entertainment in May. People Inc shares remained little changed on Thursday.

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