Barry Diller Kevin Dietsch/Getty Images It wasn’t in the cards for Barry Diller to become a Las Vegas kingpin.
The mogul’s People Inc (formerly known as IAC) dropped its $18 billion plan to take over MGM Resorts International, the owner of the MGM Grand, Bellagio, Cosmopolitan, Mandalay Bay, New York New York, Luxor and other staples of the Las Vegas strip.
Diller said on Wednesday of the deal, “There are lots of ingredients that go into a proposal of this kind on its way to completion. 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. What is undimmed is our belief in the future of MGM Resorts. We continue to hold 66.8 million shares representing approximately 27% of MGM Resorts and have total confidence in both the management and the Company’s prospects.”
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In addition to being a casino juggernaut with 44,000 full-time employees in the U.S. as well as resort properties in China, MGM Resorts also has hit the gas on its joint venture online sportsbook, BetMGM.
Diller’s People Inc, built out of brands acquired through snapping up publisher Meredith, is fronted by online behemoth People magazine and includes InStyle, Food & Wine, Travel + Leisure, Southern Living and more lifestyle titles.
When Diller made his play in June he characterized the move to own just over 50 percent of the company as a big bet on resorts, casinos and experiences being an “AI proof” proposition for consumers in a world where entertainment and media is rapidly being disrupted by tech giants. “AI cannot easily replicate or disintermediate and exceptional digital growth opportunities,” he said at the time, which could easily be translated to, “People still like to go to Las Vegas, even if they’re able to bet on their AI-slop-filled phones.”
MGM Resorts issued its own statement on Wednesday from its board of directors stating that a special committee had been in talks with negotiations with People Inc but the company ultimately decided to stay the course as a standalone resort and gaming giant rather than join Diller’s media business.
“The Board remains excited to continue to lead MGM Resorts as a standalone company,” stated Paul Salem, chairman of the MGM Resorts Board. “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. In addition, our international portfolio of MGM China and the significant opportunity ahead with MGM Osaka support a clear path to increasing shareholder value.”
More to come.
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