Barry Diller Pushes His Chips Into MGM

Barry Diller’s latest move turns MGM from a public-market casino operator into a high-stakes buyout target. People Incorporated, formerly IAC, offered to buy the MGM shares it does not already own for $48.30 per share in cash, a proposal that would value the casino and entertainment company at about $18 billion including debt. The proposal got a distinctly Vegas twist as MGM shares continued to trade about 5% above the offer price Tuesday — the first bet was serious, but nobody seemed ready to call it final.

People Incorporated already owns 26.1% of MGM, so this is not exactly Diller wandering into the casino cold. It is a major shareholder trying to take control of an asset it has been studying for years. Under the proposal, People would own just over 50.1% of the post-transaction company, with other investors holding minority stakes, and MGM’s current management team would be expected to keep leading the business. Diller’s argument is straightforward — MGM has real-world assets that artificial intelligence cannot easily copy, plus digital growth opportunities that he believes the public market is not fully valuing.

That makes MGM an unusual target for a company rooted in media and internet deals. MGM brings a portfolio of Las Vegas Strip resorts, regional casinos, international assets, and the BetMGM joint venture, giving People a mix of physical entertainment, hospitality, gaming, and online betting exposure. MGM’s latest quarter offered some support for that pitch. The company reported record first-quarter consolidated net revenue of $4.5 billion, with MGM Digital revenue, which excludes BetMGM, up 43%, MGM China revenue up 9%, and Las Vegas Strip resort revenue increasing year over year for the first time since the third quarter of 2024.

The catch is that this is still only a proposal, not a signed deal. MGM’s board said it will review the offer with financial and legal advisers, and there is no guarantee that any agreement gets reached. A transaction would still require finalized financing, regulatory approvals, and a price public shareholders are willing to accept. The share reaction made one thing clear — this may not happen on the cheap. Diller may have opened with a serious bid, but MGM investors are already acting like the river card is still coming.

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