Sept 24 (Reuters) – MGM Resorts International is discussing making a bid to purchase Barry Diller’s People Inc, the Wall Street Journal reported on Thursday, a day after People Inc withdrew its proposal to buy MGM Resorts.
New York-based People’s shares rose 9% after the bell.
If it decides to proceed, MGM could make its proposal in the coming days, the report added, citing people familiar with the matter.
The offer represents an unexpected attempt by MGM to acquire the company that has been its largest shareholder for years.
People, formerly known as IAC, began building its stake in MGM in 2020, when the casino operator’s shares were battered by closures and travel restrictions due to the COVID-19 pandemic.
The media company’s stake in MGM, currently around 27%, is worth roughly as much as its own market cap, according to the Journal.
MGM did not immediately respond to a Reuters request for comment, while People declined to comment.
(Reporting by Natalia Bueno Rebolledo in Mexico City and Aatreyee Dasgupta in Bengaluru; Editing by Maju Samuel)
Comments