People Inc., controlled by media executive Barry Diller, withdraws its proposal to acquire full control of MGM Resorts International. The company says it will keep its existing roughly 27% stake in MGM and is no longer pursuing the transaction to buy the remaining shares.
Outlets report that People Inc submitted a formal bid in June for the Las Vegas casino operator to obtain all outstanding MGM shares it did not already own, which had been described as an $18 billion plan. Variety attributes the decision to People Inc’s assessment that “the mix” of the deal was not coming together as expected. Deadline similarly reports that People Inc remains open to strategic alternatives, though details of any new approach are not specified in the accounts.
The reports agree that the withdrawal ends the proposed path to consolidate ownership under People Inc while the current partial ownership position remains unchanged. They do not indicate that MGM Resorts is pursuing a competing merger as part of the same process, focusing instead on People Inc’s decision to step back from the bid.
