Barry Diller has spent six years watching MGM Resorts from the sidelines, accumulating a 26 percent stake in the casino giant. Now, he has decided it is time to stop watching and start owning.

In a letter sent to the MGM board of directors on June 1, Diller’s newly rebranded People Inc. (formerly IAC) submitted a non-binding proposal to acquire all outstanding shares of MGM it does not already own. The offer, priced at $48.30 per share in cash, values the company at $18 billion. It is a bold play to pull a massive, publicly traded entity into the private sphere, driven by Diller’s conviction that Wall Street simply doesn't understand what it has.

The Argument for Going Private

Diller’s thesis is rooted in a specific frustration: the public market’s inability to price the durability of physical assets. In his letter to the board, Diller was blunt about the disconnect between MGM’s current valuation and its potential.

“We believe that MGM’s assets and businesses are not currently realizing their full potential in the public markets,” Diller wrote. “It will be difficult to correct this situation in MGM’s current form as a public company.”

For Diller, MGM represents a rare hedge in an era defined by digital disruption. He views the company’s physical casinos and resorts as assets that AI cannot easily replicate or disintermediate. By taking the company private, Diller argues he can strip away the quarterly pressures of public reporting and focus on long-term digital growth opportunities that he believes the market is currently ignoring.

The Math Behind the Bid

The offer represents a significant premium for shareholders. At $48.30 per share, the bid sits 24 percent above the volume-weighted average price of MGM stock for the 30 trading days ending May 29, 2026. Against the 90-day average, the premium climbs to over 30 percent.

To fund the acquisition, People Inc. plans to leverage a combination of cash on hand from both its own coffers and MGM’s, supplemented by additional debt and equity financing. If the deal closes, People Inc. would emerge with a 50.1 percent controlling stake in the casino operator, leaving room for other minority investors to remain involved.

Why This Matters Now

This move is the first major strategic pivot for the company since its April rebrand from IAC to People Inc. The name change signaled a shift toward a more consolidated focus on publishing and core assets, and the MGM bid is the most aggressive expression of that new identity yet.

While the proposal is currently non-binding, Diller is positioning it as a “high certain transaction.” He has explicitly praised MGM’s current management team, suggesting that his goal is not to dismantle the company, but to provide the capital and the private structure necessary to support its next phase of growth.

Key Takeaways

  • The Bid: People Inc. has offered $48.30 per share in cash to take MGM Resorts private, valuing the company at $18 billion.
  • The Rationale: Diller argues that MGM’s physical assets are undervalued by public markets and are uniquely resistant to AI-driven disruption.
  • The Structure: If successful, People Inc. would control 50.1 percent of the equity, with the deal financed through a mix of cash, debt, and equity.

For the MGM board, the decision now rests on whether they agree with Diller’s assessment that the company’s future is better served away from the scrutiny of the public markets. With a 26 percent stake already in his pocket, Diller has made it clear he is not just a casual observer. He is a partner who is ready to take the wheel.