People Inc withdraws MGM Resorts takeover proposal valued above $18bn

People Inc has withdrawn its proposal to acquire the MGM Resorts International shares it does not already own, MGM confirmed. The proposal, submitted on 1 June, valued the deal at more than $18bn and offered $48.30 a share for the remaining stock. People holds 66.8 million MGM shares, approximately 27% of the company.

Barry Diller, chairman and senior executive of People, said the components of the proposal had not come together as the company had hoped. "We didn’t feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time," he said in a statement. Diller said People's belief in MGM's future was undimmed and that the company remained open to a strategic transaction with MGM and to considering a range of alternatives.

MGM said a special committee of its board had taken part in negotiations with People before the proposal was withdrawn. Paul Salem, chairman of the MGM board, said the board remained focused on leading MGM as a standalone company and pointed to the Osaka project as an opportunity to increase shareholder value. MGM Osaka, a $10bn development on Yumeshima island in Osaka Bay, is under construction and scheduled to open by the end of 2030 as Japan's first integrated resort. MGM's project in Dubai, valued at $2.5bn, is scheduled to open in Q3 2028.

Earlier in September, MGM chief executive Bill Hornbuckle said the company was still awaiting approval from the United Arab Emirates for its gaming licence and remained confident it would be granted. MGM operates 11 properties on the Las Vegas Strip, regional casinos across the US and resorts in Macau, and runs BetMGM through a 50-50 partnership with Entain. MGM shares fell $3.24, or 8.57%, to $34.61 in after-hours trading. The Las Vegas-based company is listed on the New York Stock Exchange.

Analysts commented on the withdrawal. Barry Jonas of Truist Securities wrote that the specific factors behind the decision were unclear but noted the regulatory complexity of a company like MGM, adding that the deal would have been a take-private acquisition for MGM with no discussions about taking People private. David Bain of Texas Capital Securities said the end of the talks was not overly surprising to investors and that there had been significant skepticism the transaction would succeed.