People Incorporated, formerly IAC, has launched an $18bn (£13.4bn) bid to take control of gambling giant MGM Resorts International.

If it goes ahead, the takeover could have consequences far beyond the US as MGM Resorts is also the owner of Swedish-founded iGaming company LeoVegas and the international BetMGM sportsbook.

Barry Diller-founded People Incorporated, which already owns around 26% of MGM Resorts, has offered $48.30 per share in cash for the shares it does not already own.

It values MGM Resorts at a premium of 24.1% to its 30-day volume-weighted average share price and 10.6% above its 29 May closing price – the last day of trading before the offer was announced. 

The offer boosted MGM Resorts shares yesterday though, as they rose by 16% intraday to $50.69, bumping its market cap up to just shy of the $13bn mark. 

Diller said the company originally invested in MGM Resorts in 2020 because of its combination of hard-to-replicate physical assets and long-term digital growth opportunities. 

He argued that the market continues to undervalue MGM Resorts’ portfolio and that taking the company private could help unlock its full potential.

In a letter to the MGM Resorts Board of Directors setting forth the terms of the proposal, Diller wrote: “People Incorporated will be a good steward for MGM’s assets, given our large stake in the business today and our deep familiarity with the business. MGM shareholders will receive attractive value for their shares, fully de-risking their investment at a compelling return. 

“Our proposal is subject to customary conditions, including the negotiation and execution of a mutually satisfactory binding agreement. Given our substantial knowledge of MGM, we expect that we can complete our confirmatory due diligence quickly, in parallel with negotiation of the definitive transaction agreements and finalising required financing, and reach a prompt signing. 

“We can deliver a highly certain transaction. The transaction would not be subject to any financing condition, and we are confident in our ability to fund the purchase price while maintaining prudent leverage, based on existing cash on hand at People Incorporated and MGM and preliminary conversations with other potential equity investors and financing sources.  

“The transaction would be subject to limited competition approvals and applicable gaming regulatory approvals, and we would work closely with MGM in obtaining those approvals. 

“We expect that People Incorporated would own just over a majority of the post-closing equity in MGM, and would have control over the business, with minority ownership by other investors (who may include some current MGM shareholders). We expect MGM’s current management team would continue to lead the business and would seek to discuss suitable terms with the relevant individuals at the appropriate point in the process.”

Under the proposal, People Incorporated would fund the transaction through a mix of existing cash and additional debt and equity financing. 

The half of the business not under the ownership of People Incorporated would be held by other investors, potentially including existing MGM shareholders.

People Incorporated said that the proposal is non-binding and remains subject to due diligence, financing arrangements, regulatory approvals and the negotiation of definitive agreements. 

Diller, who sits on MGM’s board, said he would recuse himself from any board deliberations relating to the offer.

MGM’s reach extends far beyond US

Since the offer was announced, speculation has abounded about what consequences it could have for Entain, the UK-founded, Isle of Man-headquartered gaming multinational.

There is the possibility, though purely speculative right now, that a Diller-owned MGM may push to buy out Entain’s 50% stake in the US BetMGM joint venture. 

The partnership was created in 2018 and, while it has achieved profitability, it has not gone without its controversies – notably MGM’s attempt of a full takeover of Entain in 2021. 

MGM’s presence across Europe has also grown in recent years, particularly since its 2022 acquisition of LeoVegas. 

The business now uses LeoVegas’ proprietary technology and platform, including its Tiger sportsbook. 

Its BetMGM B2C sportsbook is a key presence across markets including Scandinavia, the Netherlands and the UK, and recently expanded into Brazil – a complex but affluent emerging market. 

There would be a lot to dissect should this deal be pursued. 

On a relatively smaller scale, BetMGM’s European presence has expanded to the point where it is a key sports sponsor, which has included partnerships with the PDC Premier League and Tottenham Hotspur.

If it is to be pursued, it would rank among the largest transactions in the global gaming sector in recent years and would return MGM to private ownership for the first time since its public listing.

It marks the second big rumbling of a multi-billion dollar US gambling deal in the space of a week, following Caesar’s $17.6bn sale to private holding company Fertitta Entertainment.  

In 2025, MGM reported consolidated net revenues of $17.5bn and consolidated adjusted EBITDA of $2.4bn.