• Diller’s firm has submitted a $48.30-per-share all-cash bid to take MGM Resorts private.
• The total deal is valued at $18 billion and also includes the assumption of $6 billion in debt. 
• People already owns a 26.1% stake in MGM Resorts.

Shares of MGM Resorts International (MGM) are in focus on Monday after billionaire Barry Diller’s firm, People Inc. (IAC), submitted an $18 billion cash bid to take the casino operator private.

At the time of writing, MGM stock was up more than 11% in premarket trading.

The Buyout Offer

Diller’s firm has made a $48.30-per-share all-cash bid for MGM, representing a premium of roughly 10% as of the stock’s last closing price on Friday. The total deal value also includes the assumption of $6 billion in debt.

Notably, Diller’s unique position at MGM Resorts makes it difficult for external parties to make counteroffers, as he  holds 26% of the voting shares in the casino and resort company, along with two board seats, one of which he occupies.

“We believe that MGM's assets and businesses are not currently realizing their full potential in the public markets and that it will be difficult to correct this situation in MGM's current form as a public company,” Diller said on Monday.  “Accordingly, we would like to work with MGM to agree on a transaction in which our company and other investors provide MGM's public shareholders with an attractive premium in cash for their interest in MGM, and MGM would become a private company.”

Once the deal closes, People Inc. would own a 50.1% controlling interest in MGM Resorts.

Rebranding And Restructuring

In April, Diller announced that his holding company, IAC, would rebrand as People Inc., with the corporate identity makeover taking effect from August this year.

Diller’s firm has been streamlining its portfolio in recent years, now concentrating its holdings just on the media publishing brands under People Inc., which include the namesake and Investopedia, among others, as well as its investments in MGM.

“We have an excellent balance sheet with plenty of cash to pursue opportunities.  It's possible we'll find new arenas, that's always an option, but for now we'll concentrate on the two we have in front of us,” Diller told shareholders in April.

His holding company used to own Care.com, an online marketplace that connects users with babysitters, nannies, tutors, senior care providers, housekeepers, and pet sitters, among other care providers, and Angi, a home improvement, repair, and maintenance services portal.

What Do Retail Traders Think About MGM

On Stocktwits, retail sentiment about MGM stock turned ‘extremely bullish’ from ‘bullish’ over the last 24 hours.

MGM stock has risen nearly 20% so far this year and 38% over the past 12 months, outperforming the benchmark S&P Index.

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