MGM Stock Slumps 9% After-Hours — Barry Diller’s People Inc. Scraps Proposal to Buy Out MGM Resorts

Media executive Barry Diller's People Inc. has abandoned its multi-billion-dollar proposal to purchase the remaining shares of MGM Resorts International.

• People Incorporated formally withdrew its cash offer to acquire the remaining public shares of MGM Resorts International.
• The transaction stalled as Chairman Barry Diller struggled to secure the necessary equity backing from outside co-investors, Bloomberg reported. 
• People Inc. remains MGM Resorts' largest shareholder, holding around a 27% stake (66.8 million shares) and expressing long-term optimism about the company's prospects. 

Media mogul Barry Diller’s People Inc. (PPLI)  has called off its proposal to acquire all public shares of MGM Resorts International (MGM), halting a multi-billion-dollar effort to take the global casino operator private.

The decision, announced on Wednesday, concludes months of negotiations following the original buyout proposal submitted on June 1, 2026. While the deal’s collapse leaves MGM Resorts as an independent, publicly traded entity, People Inc. emphasized that it intends to remain a principal, long-term investor in the enterprise.

MGM stock tumbled nearly 9% after-hours on Wednesday, while PPLI stock rose 3%. 

Assembly Challenges Sink Buyout Bid

The initial proposal, offering $48.30 per share, aimed to grant People Inc. a controlling 50.1% majority stake, with outside equity partners covering the remainder alongside new debt financing and existing corporate cash.

"There are lots of ingredients that go into a proposal of this kind on its way to completion," Diller said in an official statement. "We didn't feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time.”

However, Diller faced challenges in assembling the financial elements needed to execute the transaction, Bloomberg reported, citing sources familiar with the matter. 

People Inc., the New York-based parent company of PEOPLE, Food & Wine, and Travel + Leisure, currently holds 66.8 million shares of MGM Resorts, representing around 27% of the company.

Diller confirmed that his firm retains full confidence in MGM’s executive leadership and operating prospects and remains open to future strategic transactions or corporate restructuring alternatives.

MGM Charts Independent Path Forward

MGM Resorts International confirmed the withdrawal of the acquisition bid and reiterated its commitment to operating as an independent company. 

Paul Salem, Chairman of the MGM Resorts Board, expressed enthusiasm for the organization’s trajectory as a standalone business.

"The Board remains excited to continue to lead MGM Resorts as a standalone company," Salem said. "Our leading position in Las Vegas, our best-in-class regional properties, and BetMGM's continued momentum highlight the value we bring to our shareholders.”

Salem also pointed toward the enterprise’s international pipeline, including operations under MGM China and a flagship integrated resort development in Osaka, Japan, as key pillars for expanding shareholder value.

MGM Stock: Retail View 

Retail sentiment on Stocktwits was ‘bullish’ with ‘high’ message volumes.

MGM stock has gained 1.1% year-to-date. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<