Barry Diller's People Inc. Drops $18B MGM Resorts Buyout

Barry Diller's People Inc. has officially withdrawn its roughly $18 billion buyout offer to take MGM Resorts International private after months of evaluation [1], [2]. The decision keeps the gaming giant operating as an independent public company, while People Inc. retains its existing 27% ownership stake and remains open to exploring other alternatives [1], [2].

Why did Barry Diller withdraw the buyout proposal?

People Inc. walked away from the acquisition after negotiations stalled over the structure and terms of the final agreement [2]. As reported by Hotel Dive, Diller, who serves as chairman and senior executive at People Inc., explained that taking an enterprise private requires several elements to align smoothly [2]. Diller noted that the company decided to halt the buyout because they did not feel the transaction mix was forming as anticipated [1], [2]. People Inc. had initially submitted the bid in June, seeking to acquire all outstanding shares of MGM Resorts that it did not already hold [2]. A special committee formed by MGM's board of directors evaluated the proposal over the summer before the bidder pulled out [2].

What will happen to People Inc.'s current ownership stake?

People Inc. will maintain its existing position as MGM's primary shareholder without trimming its equity [1], [2]. People Inc., previously known as IAC, built up its 27% position starting in 2020 when pandemic restrictions depressed hospitality equities, Skift reported [1]. Today, the conglomerate holds 66.8 million MGM shares [2]. Diller emphasized that People Inc. maintains complete confidence in MGM's executive leadership and future direction [1], [2]. In addition, Diller confirmed that People Inc. stays open to and interested in a potential transaction with MGM down the line, expressing willingness to evaluate varied structures [1], [2]. Diller, who sits on MGM's board, previously built online travel platforms including Expedia, Hotels.com, Tripadvisor, and Hotwire before spinning them off in 2005 [1].

How did MGM Resorts' board respond to the decision?

MGM Resorts confirmed it will move forward independently under the stewardship of its existing board and leadership team [1], [2]. MGM Board Chairman Paul Salem stated in a company release that the board remains eager to steer the operator as a standalone enterprise, Hotel Dive reported [2]. Salem highlighted the company's leading market share on the Las Vegas Strip, its regional gaming properties, and BetMGM's performance as operational engines that deliver investor value [2]. MGM posted 1% year-over-year growth in consolidated net revenue in the second quarter of 2026, supported by activity across its Las Vegas assets [2].

What headwinds are hitting Las Vegas hotel performance?

Las Vegas room metrics reveal cooling hospitality fundamentals, particularly among budget-conscious travelers [1]. MGM controls 40% of hotel rooms across the Las Vegas Strip, making its balance sheet sensitive to shifts in travel demand [1]. Skift reported that Las Vegas demand has experienced softening at the value end of the market [1]. During the second quarter of 2026, hotel occupancy across the Strip stayed flat year over year, while average daily rates dropped 4% [1]. These rate pressures emerge even as peer operators undergo ownership shifts; rival operator Caesars Entertainment received an acquisition bid from Fertitta Entertainment in May, which Caesars shareholders officially approved on Tuesday [2].