Another major shakeup in the world of casinos and gaming could be on the horizon.
Key Takeaways
- Barry Diller prepared an approximately $18-billion bid to acquire MGM Resorts.
- Diller’s company already owns a 26% stake in MGM and believes the company’s assets and growth potential remain undervalued.
- The proposal follows Tilman Fertitta’s agreement to acquire Caesars Entertainment and could signal brighter days ahead for a slumping Las Vegas market.
Billionaire entertainment mogul Barry Diller offered to purchase MGM Resorts International for an estimated $48.30 per share. It's equivalent to about $18 billion, according to Reuters.
People Inc., Diller’s company and the brand behind its namesake national magazine chain among several other brands, already owns a 26.1% stake in MGM. Diller is offering a 10.6% premium for remaining shares. MGM would then become a private company.
Alongside its major presence in iGaming and sports betting, MGM Resorts also owns several landmark Las Vegas properties, including Bellagio and Aria Resort & Casino.
“We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real-world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities,” Diller said in a statement.
“We continue to believe the market materially undervalues the power and durability of MGM’s assets,” he added. “We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”
The transaction would be completed in cash, with Diller recusing himself from the MGM Resorts board he sits on for actions related to the deal.
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A shifting Vegas landscape
Diller's bid comes amid other major changes on the betting landscape across Las Vegas and beyond, with Landry’s Inc. and Houston Rockets owner Tilman Fertitta agreeing to acquire Caesars Entertainment last week for an estimated $17.6 billion.
The moves from Diller and Fertitta come at a fascinating time for Sin City, whose tourism industry has been reeling in recent times amid broader economic turmoil and recession fears.
They could also be a sign of better days ahead. The company saw a strong start to 2026, according to president and CEO Bill Hornbuckle, who reported to shareholders earlier this month.
“People are still excited by what we do, and despite all the noise in the world - and we all know there’s a lot - we’re pleased with where we are, and we’re excited for the future,” Hornbuckle said, per 8 News Now.
