Barry Diller Withdraws $18 Billion Bid to Take MGM Resorts Private

Barry Diller’s People Inc. has officially withdrawn its $18 billion proposal to take MGM Resorts private, citing concerns over the deal's structure, according to a report by KFGO. The move halts a potential buyout that was valued at $48.30 per share.

Despite the withdrawal of the acquisition bid, People Inc. (formerly known as IAC) intends to maintain its existing 27% ownership stake in the casino operator. The decision marks a shift in the company's strategy toward its largest equity holding.

"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," said Barry Diller in a statement regarding the withdrawal.

Market Reaction and Corporate Response

The announcement triggered an immediate sell-off in MGM Resorts shares, which fell 8% in extended trading following the news. The decline reflects investor uncertainty regarding the company’s ownership structure and the loss of a premium buyout offer.

MGM Resorts leadership indicated that the company would continue its current operations without the influence of a private acquisition. In a statement, the company noted that the "board remains excited to continue to lead MGM Resorts as a standalone company."

Understanding the 'Mix' in Private Equity Buyouts

When a firm proposes to take a company private, the "mix" typically refers to the balance of financing, regulatory approval, and the alignment of interests between the acquiring entity and the target company's board. In this case, Diller’s characterization of the "mix" suggests that the complexities involved in reconciling the interests of People Inc.’s large existing stake with the requirements of a full buyout proved insurmountable.

For a major shareholder like People Inc., holding 27% of a firm provides influence over corporate governance without the operational burden of full ownership. By remaining a minority holder rather than a sole owner, the firm avoids the debt loads and restructuring requirements that often accompany taking a large-cap company private.