People Inc. Withdraws $18B MGM Resorts Take-Private Bid
People Incorporated has withdrawn its proposal to take MGM Resorts International private. MGM said it will continue operating as a standalone company.
MGM confirmed the withdrawal on September 23. The proposal had been on the table since June 1. A special committee of MGM’s board spent the following months in negotiations with People before the process ended this week.
People had offered $48.30 in cash per share for every MGM share it did not already own. The original June proposal was non-binding.
The transaction valued MGM at more than $18 billion, according to Reuters reporting when the bid was announced.
The Bid Was Open for 114 Days
June 1 to September 23 is 114 days. During that period, MGM did not announce a definitive merger agreement. Its latest statement says only that the special committee participated in negotiations with People over several months.
The June funding plan also did not mean People itself would own all of MGM’s equity. A People SEC filing said the company expected to own just over 50.1% after the transaction, while other investors could hold minority interests. MGM would no longer remain publicly traded under the proposal.
That structure is now off the table.
People Still Owns About 27% of MGM
People is not leaving the casino company. It still owns 66.8 million MGM shares, or approximately 27% of the company. Barry Diller also left open the possibility of another arrangement. People said it remains interested in a possible strategic transaction with MGM and would consider a range of alternatives.
The current stake also gives a useful scale comparison with the abandoned offer. MGM reported 251.6 million shares outstanding as of July 27 in its latest quarterly SEC filing. Using that figure, about 184.8 million shares were outside People’s 66.8 million-share holding.
At the old $48.30 offer price, those shares would be worth roughly $8.93 billion. That is not the same as the headline $18 billion-plus transaction value. The takeover valuation included MGM’s debt.
People’s June bid is therefore finished, but its large MGM position remains in place.