People Inc Prepares Over $18 Billion Bid for MGM Resorts, Eyeing Full Control

Media and internet giant People Inc. (formerly IAC) is reportedly preparing a bid of over $18 billion to acquire full control of MGM Resorts, in which it already holds a 26% stake.

This potential acquisition follows People Inc.'s strategic decision to focus on its core assets and was catalyzed by a recent major buyout in the casino sector, which set a new valuation benchmark.

While the deal appears financially feasible, it faces significant hurdles, including securing financing amid high interest rates and navigating complex gaming regulations across multiple jurisdictions.

IAC, now rebranded as People Inc., is reportedly preparing a massive bid to acquire full control of casino giant MGM Resorts International.

This move isn't a sudden whim but the culmination of a carefully executed strategy. The story really begins with People Inc.'s strategic shift. After selling off various assets, the company, led by Barry Diller, explicitly narrowed its focus to two core pillars: its publishing business (People) and its significant stake in MGM. Management didn't just hold the shares; they publicly called MGM 'wildly undervalued,' signaling a more active, strategic intent. This set the stage for a bigger move.

So, what paved the way for a formal offer? First, in April 2026, People Inc. and MGM signed a voting agreement. This might sound like a technical detail, but it was a crucial signal. By agreeing to cap its voting power, People Inc. showed it intended to pursue a friendly, negotiated deal rather than a hostile takeover. This move reassured MGM's board and reduced regulatory concerns, making a smooth transaction more likely.

Second, a major catalyst appeared just last week: the buyout of Caesars Entertainment. This deal was significant because it proved that large-scale financing for casino takeovers was still possible, even with higher interest rates. More importantly, it established a new, higher valuation benchmark for the sector. Suddenly, MGM's relatively low valuation multiple didn't look like a red flag, but a compelling opportunity. Analysts quickly noted that the Caesars deal made a premium bid for MGM look reasonable.

With its strategic focus clear, a friendly path established, and a favorable market precedent set, People Inc. is now making its move. The reported offer of over $18 billion represents a significant premium for MGM shareholders but still appears financially sound for People Inc., especially given its belief in MGM's long-term value. The journey ahead involves navigating financing and regulatory approvals, but the foundation for one of the year's biggest deals has been firmly laid.

EV/EBITDA: A valuation metric that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It's often used to compare the value of companies in the same industry, regardless of their capital structure.
Enterprise Value (EV): A measure of a company's total value, often used as a more comprehensive alternative to market capitalization. It is calculated as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents.
Special Committee: A committee formed by a company's board of directors to evaluate a specific transaction, such as a takeover offer, independently and without conflicts of interest.

People Inc Prepares Over $18 Billion Bid for MGM Resorts, Eyeing Full Control

Media and internet giant People Inc. (formerly IAC) is reportedly preparing a bid of over $18 billion to acquire full control of MGM Resorts, in which it already holds a 26% stake.

This potential acquisition follows People Inc.'s strategic decision to focus on its core assets and was catalyzed by a recent major buyout in the casino sector, which set a new valuation benchmark.

IAC, now rebranded as People Inc., is reportedly preparing a massive bid to acquire full control of casino giant MGM Resorts International.

EV/EBITDA: A valuation metric that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It's often used to compare the value of companies in the same industry, regardless of their capital structure.
Enterprise Value (EV): A measure of a company's total value, often used as a more comprehensive alternative to market capitalization. It is calculated as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents.
Special Committee: A committee formed by a company's board of directors to evaluate a specific transaction, such as a takeover offer, independently and without conflicts of interest.