Media Mogul Offers Over $18 Billion to Buy MGM Resorts

The People Inc. digital media company, which runs People magazine, has put in an offer to purchase MGM Resorts for over $18 billion. 

The media corporation currently owns just over a quarter of all outstanding common stock in MGM Resorts, planning to bid $48.30 a share in cash for the rest of the company. 

According to Reuters, Barry Diller, the mogul and chairman behind People, told its shareholders MGM Resorts was “wildly undervalued,” back in April. 

MGM Resorts is a major player in Las Vegas, owning roughly 40% of all hotels, resorts and casinos on the Las Vegas Strip. Yet it’s struggled in the destination lately as the economy and international travel have both waned, as its properties in Asia continue to grow in popularity. 

MGM and other Las Vegas resorts and hotels have had to get creative with the historic decline in the destination’s popularity in the past year. More recently, its Excalibur and Luxor properties launched new all-inclusive packages to entice travelers with a greater value proposition. 

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