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MGM Resorts May Flip the Script on Barry Diller with Rumored People Bid: A Comprehensive Analysis

By jili tutorial · September 25, 2026

MGM Resorts May Flip the Script on Barry Diller with Rumored People Bid: A Comprehensive Analysis

Overview: A Surprising Role Reversal in Casino and Media Dealmaking

In a twist that has caught Wall Street off guard, MGM Resorts International is reportedly considering a bid for People Incorporated—the media and investment company formerly known as IAC—just one day after People dropped its own takeover offer for the casino giant. This potential reverse acquisition would see MGM, the target of an unsuccessful $12.4 billion bid, become the acquirer of the very company that tried to buy it.

Below, we break down the background, financial stakes, strategic motivations, and market implications of this developing story, preserving all original facts while adding context and explanation.

Background: The Long‑Standing Cross‑Ownership Between MGM and People

People’s 27% Stake in MGM

People Incorporated owns roughly 27% of MGM’s outstanding shares—a stake it built primarily in 2020, when MGM’s stock plummeted during the COVID‑19 pandemic. At the time of the report, that stake was worth approximately $2.5 billion, a figure that nearly matched People’s own total market valuation of about $2.7 billion.

This unusual structure—a media/investment company holding a massive minority position in a major casino operator—set the stage for the current drama. People’s stake gave it significant influence over MGM, but also made it a potential acquisition target itself.

People’s Corporate Evolution: From IAC to a Slimmed‑Down Portfolio

Earlier this year, People changed its corporate name from IAC (InterActiveCorp) as part of a strategy to narrow its portfolio. The company has been trimming businesses outside its core publishing assets and its investment in MGM. Among its remaining holdings:

This focus on publishing and select investments made People a relatively compact but valuable entity—one that MGM could potentially acquire and then partially dismantle.

The Failed People Bid for MGM: What Happened?

The Offer That Collapsed

In June, People (under the leadership of media mogul Barry Diller) offered $48.30 per MGM share in cash, valuing the casino operator at $12.4 billion. Because People already owned 27% of MGM, the proposal was structured as a buyout of the remaining public shares.

However, on Wednesday (the day before the new MGM bid report), People called off the effort, citing an inability to put together the necessary transaction structure and financing. Diller noted that People could still pursue a strategic deal with MGM, leaving the door open for continued negotiations—but now from the other side.

Why the Bid Failed

Several factors likely contributed to the collapse:

MGM’s Possible Counter‑Bid: Strategic Rationale

Regaining Control of Its Own Stock

For MGM, buying People could be an elegant way to take back control of a large block of its own shares. Because People’s 27% stake is worth nearly as much as People’s entire market capitalization, an acquisition would effectively allow MGM to retire that stake—eliminating a major outside investor and simplifying its ownership structure.

A Window Into Other Investments

An acquisition would also give MGM insight—and potential ownership—of People’s other assets. According to the original report, MGM could then sell some of those assets to generate cash, while retaining those it considers strategically useful. For example:

This “acquire‑and‑trim” strategy is common in corporate dealmaking, allowing the buyer to pay for the acquisition with proceeds from asset sales.

Synergies with MGM’s Core Business

While casino operations and celebrity magazines may not seem like a natural fit, MGM could leverage People’s media platforms for:

Market Reaction: Stocks Move in Opposite Directions

The news of MGM’s interest triggered an immediate market response:

What’s Next? Uncertain Deal, Possible Negotiations

MGM’s Silence

MGM representatives declined to comment on the reported talks, and any deal remains uncertain at this point. The company’s board will need to weigh:

Diller’s Open Door

Barry Diller’s statement that People could still make a strategic deal with MGM suggests that negotiations are not over—even if the direction has reversed. The two companies might explore a joint venture, asset swap, or a more limited transaction rather than a full acquisition.

Key Takeaways for Investors and Observers

Stay tuned for further developments as this story unfolds.