People Inc., led by Barry Diller, has withdrawn its proposal to acquire all outstanding shares of MGM Resorts International for over $18 billion. This decision has led to a significant drop in MGM's stock price as the potential acquisition premium is removed, and MGM reaffirms its standalone strategy.
Barry Diller's People Inc. (formerly IAC) has officially withdrawn its $18 billion proposal to take MGM Resorts International private, citing that 'the mix was not coming together.' This is a significant negative catalyst for MGM, as the stock had likely been trading with an acquisition premium built into its price. The withdrawal removes this premium, causing MGM shares to fall over 10%. While MGM's board reaffirms its standalone strategy, the immediate impact is negative for shareholders who anticipated a buyout. For traders, this signals a shift from M&A speculation to fundamental valuation based on MGM's operational performance, particularly its Las Vegas and Macau assets, and digital growth initiatives. The long-term implications depend on MGM's ability to execute its standalone strategy effectively.