MGM Resorts Forms Special Committee as Barry Diller's $18B Takeover Talks Continue

MGM Resorts International formed a special committee on July 11, 2026 to evaluate a takeover bid from Barry Diller's People Inc., according to a Wall Street Journal report citing sources close to the matter. The news sent MGM shares to $48.40 in after-hours trading, just above the $48.30 per share Diller offered when he unveiled the $18 billion bid on June 1. JPMorgan is among the banks advising Diller on the deal and has committed financing for the transaction, per the Journal.

What Is the Diller-MGM Deal?

People Inc., formerly known as IAC and now publisher of People magazine among other properties, tabled a $48.30-per-share all-cash offer on June 1, 2026 to acquire the 73.9% of MGM Resorts it does not already own. The bid values MGM at approximately $18 billion in equity, or $18.8 billion including debt. People Inc. already holds a 26.1% stake in MGM, acquired over roughly six years since 2020, and holds two board seats at the company, one of which is occupied by Diller himself.

The $48.30 offer represented a 10.6% premium over MGM's closing price of $43.67 on May 30, 2026, and a 30% premium over its 90-day volume-weighted average price. MGM shares rose approximately 15% on the day the bid was first reported by The New York Times. Diller would recuse himself from board-level actions on the deal given his board seat at MGM.

"We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real-world assets that AI cannot easily replicate or disintermediate, and exceptional digital growth opportunities. That conviction has only strengthened over time." - Barry Diller, CEO, People Inc.

Why Diller Wants MGM

Diller, 84 and estimated to be worth approximately $5.2 billion as of mid-2026 per Forbes, described MGM as "a perfect hedge in a world that is changing so unpredictably fast" in a letter to People Inc. shareholders in April 2026. MGM Resorts holds total assets of $42.2 billion, making it the largest casino company in the world by this measure. Its Las Vegas Strip properties include the Bellagio, Aria, MGM Grand, Mandalay Bay and Park MGM, among others.

People Inc., which started as IAC in 1995 and built a portfolio of internet businesses including Ticketmaster, Expedia, Match.com and Care.com before spinning most of them out, rebranded to People Inc. following its acquisition of People magazine publisher. The MGM bid represents a strategic pivot toward physical-world assets that Diller has argued are resistant to artificial intelligence disruption.

Deal Structure and What Happens Next

If completed at the offered price, People Inc. would own just over 50.1% of MGM's equity, taking the company private from majority-shareholder perspective while MGM's current management team would be expected to remain in place. MGM's special committee of independent directors, formed July 11, has engaged advisors to examine the proposal. No timeline for a decision has been publicly disclosed as of July 13, 2026.

The deal timing is notable in the broader Las Vegas M&A context. Caesars Entertainment's go-shop period expired the same day the MGM committee news broke, with billionaire Carl Icahn having not publicized a competing bid for Caesars as of that date. A competing offer for MGM would likely qualify as extraordinary under People Inc.'s existing shareholder agreement, potentially allowing Diller to use his full 26.1% voting stake to block a rival suitor.

Deal Parameter	Detail
Bid price per share	$48.30 (cash)
Total equity valuation	~$18 billion
Total valuation including debt	~$18.8 billion
People Inc. current stake	26.1% (valued at $2.9 billion)
Shares sought	73.9% (remaining public float)
Premium to last close (May 30)	10.6%
Premium to 90-day VWAP	30%
Financial advisor	JPMorgan (confirmed financing)
MGM total assets	$42.2 billion

MGM's Las Vegas Portfolio and iGaming Position

MGM Resorts operates 29 hotel and gaming destinations across the US and internationally, including a 56% stake in MGM China Holdings. The company also operates BetMGM, its online gaming joint venture with Entain, which launched in Alberta, Canada on July 13, 2026, as one of five operators confirmed live on opening day. BetMGM is among the largest online sports betting and casino operators in the US, competing directly with FanDuel and DraftKings across more than 20 states.

An MGM takeover by People Inc. would create one of the most significant consolidations in US gaming history. Diller's stated rationale centers on the combination of MGM's irreplaceable physical real estate, its digital growth opportunities through BetMGM, and what he describes as a structural undervaluation by the market. MGM shares closed at approximately $48.40 in the most recent trading session, marginally above Diller's offer price, suggesting the market is pricing in a deal at or slightly above the existing terms.

Frequently Asked Questions

How much is Barry Diller offering for MGM Resorts?

People Inc. offered $48.30 per share in cash for the 73.9% of MGM it does not already own, valuing MGM at approximately $18 billion in equity ($18.8 billion including debt).

How much of MGM does People Inc. already own?

People Inc. holds 26.1% of MGM Resorts' outstanding common stock, a stake valued at approximately $2.9 billion. The company also holds two board seats, one of which Diller occupies.

What is MGM Resorts doing with the bid?

MGM formed a special committee of independent directors on July 11, 2026 to evaluate the People Inc. proposal. JPMorgan has committed financing for the deal. No timeline for a decision has been disclosed.

Would a MGM takeover affect BetMGM?

BetMGM is a 50-50 joint venture between MGM Resorts and Entain. A change in MGM ownership would likely require Entain's agreement on how the joint venture is handled under any new corporate structure.