Media investor Barry Diller has withdrawn his $18 billion proposal to take MGM Resorts private, ending months of negotiations over the Las Vegas casino and hospitality company. Diller’s holding company, People Inc (formerly IAC), which owns approximately 27 percent of MGM Resorts and holds a board seat, had made the offer public in June to acquire the remaining shares it did not already control.
In a statement on Wednesday, Diller said the various elements necessary to finalize the transaction were not aligning as hoped, prompting his decision to halt the bid. Despite this, he affirmed his confidence in MGM’s long-term prospects and continued to hold his sizable stake in the company. MGM Resorts also confirmed the withdrawal, with Chairman Paul Salem noting the company remains focused on standalone operations and growth opportunities, particularly internationally.
MGM Resorts is a dominant player on the Las Vegas Strip, owning about 40 percent of the area’s hotel rooms, including high-profile properties such as Bellagio and Mandalay Bay. The company also co-owns BetMGM, an online gambling platform operated jointly with UK gaming group Entain. The industry, however, faces challenges as prediction market platforms gain traction by offering bets on a broad range of events from sports to politics, drawing users away from traditional operators like BetMGM, DraftKings, and FanDuel.
The timing of Diller’s bid came at a challenging moment for Las Vegas, which experienced a notable drop in visitor numbers last year—the first since the Covid-19 pandemic began—exacerbating pressure on casino operators. MGM and its competitors have increasingly relied on amenities and perks to attract higher-spending visitors amid shifts in the city’s tourist demographics, with fewer lower- and middle-income families visiting.
Diller had expressed optimism about the resilience of real-world experiences despite rapid advances in artificial intelligence. He previously remarked that no technology could replace the direct connection between consumers and resorts, underscoring his rationale for investing in a sector centered around physical experiences. His interest coincided with broader consolidation in the casino industry, highlighted by billionaire Tilman Fertitta’s $17.6 billion acquisition of MGM's rival Caesars Entertainment earlier this year.
Following the withdrawl of the bid, MGM’s share price fell roughly 10 to 11 percent, erasing gains made since the original offer announcement in June. Market analysts indicated that the stock decline could reflect event-driven trading and tempered investor enthusiasm, which had waned since the initial proposal. Some had previously viewed Diller’s involvement as a potential upside by reducing short-term market pressures on MGM, though the ultimate impasse suggests lingering uncertainties about the company’s path forward in an evolving gambling landscape.