MGM Resorts International is considering making a bid to acquire Barry Diller’s People Incorporated, according to the Wall Street Journal.
The move comes a day after the publisher withdrew a takeover bid to acquire all outstanding shares of the hospitality company. At the time of the initial proposal in June, the deal would’ve valued MGM at around $18 billion.
“There are lots of ingredients that go into a proposal of this kind on its way to completion. We didn’t feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time,” Diller said in a statement on Wednesday. “What is undimmed is our belief in the future of MGM Resorts.”
Despite withdrawing the bid, Diller said People remained “open to and interested in the possibility of a strategic transaction” with the company in the future and looked forward to “considering a range of alternatives.” It continues to hold 66.8 million of MGM’s shares, representing a stake of approximately 27%.
Representatives for People Inc. declined to comment. MGM Resorts did not immediately return TheWrap’s request for comment.
People Inc., which has a market cap of $2.68 billion, changed its name from IAC earlier this year and has embarked on a plan to generate $40 million in annual run rate cost savings, which is expected to be completed by the first quarter of 2027.
Its other brands include Food & Wine, Real Simple, Southern Living, Travel & Leisure, Allrecipes, Better Homes & Gardens, InStyle, Verywell, Investopedia, Entertainment Weekly, The Daily Beast, Ask Media Group and Vivian Health.
Meanwhile, MGM Resorts International, which has a market cap of $8.48 billion, has a portfolio of 30 hotel and gaming destinations globally. It also operates the sports betting and online gaming joint venture BetMGM and its subsidiary LV Lion Holding Limited offers sports betting and online gaming in several jurisdictions throughout Europe and Brazil.
Shares of People Inc. surged 8.5% in after-hours trading on Thursday following the news, while MGM shares were trading flat after closing down 10.9%.
