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Barry Diller's People Inc. rescinds MGM Resorts takeover offer
cnbc.com • • business
Key Points:
- Barry Diller's People Inc. has withdrawn its proposal to buy MGM Resorts International, causing MGM shares to drop 9% on Thursday.
- People Inc., which owns about 26.1% of MGM, had offered $48.30 per share nearly four months ago but cited the deal's complexity as the reason for pulling out.
- Diller mentioned that the mix of factors needed to complete the deal was not aligning as hoped and decided not to pursue taking MGM private at this time.
- The decision was partly influenced by concerns over the significant debt the acquisition would have imposed on MGM.
- Despite withdrawing, People Inc. remains open to future strategic transactions with MGM Resorts.
