Barry Diller’s People Inc. Bids $18 Billion to Buy MGM Resorts, Raising Questions About BetMGM’s Future

Barry Diller’s People Inc. made a formal bid on Monday, June 2, to acquire all outstanding shares of MGM Resorts International that it does not already own, valuing the casino giant at approximately $18 billion and immediately raising questions about the future of its BetMGM sports betting joint venture with Entain. People Inc., which is the rebranded version of the media company formerly known as IAC, already holds a 26.1% stake in MGM Resorts and submitted a non-binding proposal to the board offering $48.30 per share in cash.

The offer represents a premium of approximately 10.6% over MGM Resorts’ closing share price on May 29, and more than 30% above the volume-weighted average price over the prior 90 trading days. MGM Resorts confirmed receipt of the proposal and said its board of directors, in consultation with financial and legal advisers, will carefully review the offer to determine the course of action that is in the best interests of shareholders. People Inc. indicated it expects to fund any transaction with a combination of existing cash, debt, and equity funding commitments, and expects to own just over 50.1% of the equity of the combined company, with existing shareholders potentially holding minority interests.

BetMGM Joint Venture Emerges as a Key Variable

The proposal comes just days after Fertitta Entertainment reached a definitive agreement to acquire Caesars Entertainment in a separate $17.6 billion transaction, triggering a broader wave of speculation about consolidation across the US gaming sector. Analysts at BNP Paribas noted that while the People Inc. bid does not directly suggest any immediate interest in Entain or its 50% stake in BetMGM, a change of ownership at MGM could accelerate management ambitions to fully consolidate the online sports betting joint venture. BetMGM is one of the three largest online sportsbooks in the United States, competing directly with FanDuel and DraftKings for market share.

Truist Financial analyst Barry Jonas described the offer as a positive read-through for MGM and its peers, noting that the 0.7x EBITDAR premium to the Caesars transaction is warranted given MGM’s long-term growth assets, including its Osaka resort project in Japan. However, Jonas and other analysts cautioned that uncertainty remains significant. MGM’s management has previously stated its view that shares are materially undervalued, making acceptance of the offer far from guaranteed. The company’s complex ownership structure, which includes the BetMGM joint venture, ongoing Macau operations, and a major Japan development project, adds further layers of complexity for any potential buyer.

M&A Wave Hits the Casino Sector

CBRE Director of Equity Research John DeCree said the casino sector appears ripe for additional leveraged buyout and management buyout activity, citing strong free cash flow generation, proven revenue durability, and what he characterized as depressed public market valuations. Beyond MGM, DeCree identified Accel Entertainment, Entain, Melco Entertainment, and PENN Entertainment as other potential take-private candidates that remain undervalued in public markets. Wall Street analysts have been watching the gaming space closely since the Fertitta-Caesars announcement, which included a go-shop period through July 11 that allows Caesars to solicit competing offers.

For sports bettors and online gambling users, the implications of a People Inc. takeover of MGM could be far-reaching. The BetMGM sportsbook is one of the most widely used platforms across legal US markets, and any ownership transition would likely place its long-term structure under review. Players who use BetMGM promotions should watch this story closely as the deal process evolves. MGM noted shareholders do not need to take any action at this time, and the company’s board has not indicated whether it intends to accept, reject, or seek alternatives to the proposal.