Billionaire media executive Barry Diller is seeking to take control of MGM Resorts International by acquiring the 73.9% of the company that he does not already own, a major shift in the domestic gambling landscape to keep an eye on while we continue to guide you toward the best odds and recommendations at trusted offshore betting sites.
Rolling the Dice
In a letter addressed to MGM CEO Bill Hornbuckle and Chairman Paul Salem, Diller proposed purchasing the remaining shares for $48.30 each. The offer represents a 10.6% premium over Friday’s closing price and roughly 30% above the stock’s volume-weighted average price over the past 90 trading days.
Investors reacted positively to the proposal. MGM shares opened about 11% higher at $48.46 and continued trading above Diller’s offer price throughout the day, suggesting expectations of a higher bid or competing interest.
According to the proposal, People Inc. — formerly known as IAC — does not plan to fully privatize MGM. Instead, it intends to hold just over 50.1% of the company, while minority investors, which could include current MGM shareholders, would retain the remaining ownership stake.
“We began investing in MGM nearly six years ago because we believed
“That conviction has only strengthened over time,” Diller added, pointing to a rapidly evolving regulatory landscape that we closely track in our sports betting states guide to help you find the best legal wagering options.
Diller Sees Untapped Value
In his letter, Diller argued that MGM’s assets are not receiving the valuation they deserve in public markets. He suggested that remaining a publicly traded company could make it difficult for MGM to fully realize its potential.
Despite the ownership change, MGM’s existing management team would remain in place. Diller said his investment thesis has only strengthened since first backing MGM nearly six years ago. He pointed to the company’s portfolio of physical assets, which he believes are resistant to disruption from artificial intelligence, as well as its long-term digital growth opportunities.
“We continue to believe the market materially undervalues the power and durability of MGM’s assets,” Diller wrote, adding that management has positioned the company well for its next stage of growth.
Diller’s involvement with MGM began in August 2020, when his company invested approximately $1 billion for a 12% stake. Just ten days later, both Diller and then-IAC CEO Joey Levin joined MGM’s board of directors. Since that initial investment, Diller has steadily increased his ownership position. An amended filing released Monday showed that he now controls 26.1% of the company.
Because of his role as both a major shareholder and board member, Diller has recused himself from any board discussions regarding the proposed transaction.
Another Major Deal in the Gaming Industry
The MGM proposal marks the second significant acquisition offer involving a major casino operator with a substantial online gaming business in less than a week.
Last Thursday, billionaire investor Tilman Fertitta submitted a $17.6 billion all-cash offer to acquire Caesars Entertainment. Combined with the potential ownership changes involving MGM’s 50% stake in BetMGM, the transactions could reshape competition in the U.S. online sports betting and casino market. As these major platforms shift, we remain dedicated to pointing you toward the safest places to play, offering expert insights as well as vital gambling help and resources to ensure a responsible betting experience.
Any ownership changes are unlikely to push either company into prediction markets. Nevada regulators have maintained a position that effectively requires casino operators to avoid those markets if they wish to retain their Las Vegas gaming licenses.
