People Inc., the company controlled by Barry Diller, announced it had rescinded its previously announced proposal to acquire MGM Resorts International. The move came nearly four months after the company had offered to purchase the casino operator at $48.30 per share. People Inc. currently holds a stake of roughly 26.1% in MGM.
Diller, who serves as chairman of People Inc. (formerly known as IAC), attributed the decision to withdraw the proposal to complications arising in the deal’s progression toward completion. In a statement, he noted that various factors involved in such a transaction did not align as anticipated, prompting the company to halt its efforts to take MGM private for the time being. According to reporting from CNBC, the substantial debt burden that would have accompanied the acquisition played a significant role in the decision to step back.
Despite ending the current proposal, Diller indicated that People Inc. maintains interest in future strategic possibilities with MGM Resorts. He stated the company remains receptive to exploring a range of alternatives in conjunction with the casino operator going forward. The withdrawal of the bid resulted in MGM shares declining approximately 11% during trading on Thursday.
The development occurred amid broader consolidation activity in the gaming industry. Earlier in the week, shareholders of Caesars Entertainment had approved a separate acquisition offer from billionaire Tilman Fertitta valuing the company at $17.6 billion, with Caesars shareholders set to receive $31 per share in cash.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI