Barry Diller’s People Inc. has withdrawn its proposal to acquire the remaining public shares of MGM Resorts International, ending a months-long effort to take the casino operator private. The decision removes a major potential transaction from the U.S. gaming sector at a time when investors are closely watching consolidation, consumer spending and the performance of large hospitality assets.

People Withdraws Its $18 Billion Proposal

In June, People Inc., formerly known as IAC, submitted a non-binding proposal to acquire all MGM shares it did not already own for $48.30 per share in cash. The proposal valued the transaction at more than $18 billion and represented a 10.6% premium to MGM’s most recent closing price at the time, while the offer also represented a 24.1% premium to MGM’s 30-trading-day volume-weighted average price.

People currently owns approximately 27% of MGM, representing 66.8 million shares. After the proposal, MGM’s board formed a special committee of independent directors to evaluate the offer and engaged in negotiations with People over the following months.

MGM Shares React as the Takeover Premium Disappears

MGM shares fell about 8% in extended trading after People announced the withdrawal on September 23, while the stock declined roughly 10% during Thursday’s regular session. The reaction reflects the immediate removal of the takeover premium that had become embedded in MGM’s valuation following People’s June proposal.

MGM owns marquee properties representing roughly 40% of the Las Vegas Strip, while its business also includes regional casinos, digital operations and assets in China, including Macau. The company has faced uneven performance in Las Vegas, particularly weaker foot traffic, while its digital operations and China exposure have provided additional sources of growth.

Diller Keeps the Door Open to a Future Transaction

Diller said People decided not to pursue taking MGM private because the various components required for the transaction were not coming together as hoped. However, he also reaffirmed People’s confidence in MGM’s management and prospects and said the company remains open to a strategic transaction and a range of alternatives.

For People, the withdrawal does not represent an exit from MGM. The company retains its roughly 27% stake, preserving significant exposure to MGM’s casino, hospitality and digital businesses while avoiding the financing and execution requirements associated with acquiring the remaining shares.

The next focus will be MGM’s performance as a standalone public company and whether People eventually revisits a strategic transaction. Investors will be watching Las Vegas traffic, Macau and other international operations, BetMGM and digital activity, cash generation and the broader consolidation environment in the gaming industry. For now, the $48.30-per-share proposal is off the table, but Diller’s continued interest means MGM’s ownership structure could remain a strategic issue for the market.