Barry Diller's People Inc. has withdrawn its offer to buy the rest of MGM Resorts International, sending MGM shares down roughly 11%. Diller cited the complicated nature of the deal but said his company remains open to a future transaction.
Shares of MGM Resorts International dropped about 11% on Thursday after Barry Diller's People Inc. rescinded its proposal to buy the casino operator. People Inc. already owns roughly a 26.1% stake in MGM.
The update comes nearly four months after People Inc. offered to purchase MGM Resorts for $48.30 per share in June. Diller, chairman of People Inc. — formerly known as IAC — attributed the decision not to pursue taking the company private to the complicated nature of the deal.
CNBC's David Faber reported that Diller backed off the deal in part because of the significant debt load it would have created for the company. Still, Diller said he remains open to considering a range of alternatives for a future strategic transaction with MGM.
Earlier this week, Caesars Entertainment shareholders approved an offer from billionaire Tilman Fertitta to acquire the casino company for $17.6 billion. Caesars shareholders will receive $31 per share in cash under that deal.
Source: CNBC
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