According to the American newspaper “The New York Times”, behind the spectacular offer worth several billion dollars is the icon of American business, Barry Diller, and his investment vehicle, People Inc.
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On Monday, the shares of MGM Resorts International recorded a sudden increase of as much as 10 percent. The impulse for sudden purchases of shares was a report published by the Dealbook website, owned by The New York Times.
It shows that Barry Diller's company People Inc. — previously known on the market as IAC — is preparing a gigantic offer to take over the casino operator. The value of the planned transaction is estimated at an astronomical amount of USD 18 billion.
The biggest player deals the cards
According to media reports, the proposal People Inc. is working on is to be an all-cash transaction. The investor plans to offer $48.30. for each share of MGM Resorts, which would allow for the purchase of the remaining 73.9 percent. shares that Diller's company does not currently own.
Special offer
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This move by Barry Diller is not a complete surprise to market observers, but rather a consistent implementation of a long-term strategy. IAC/InterActiveCorp already controls 26.1 percent. shares in MGM Resorts International.
What's more, the investor has a strong, direct influence on the daily management and strategic decisions of the Las Vegas giant. Two representatives of IAC/InterActiveCorp currently sit on the MGM supervisory board, and one of these prestigious seats is held personally by the billionaire himself, Barry Diller. At this point, however, the reports do not indicate a precise timeline or date when a formal buyout offer will be presented to the MGM Resorts board of directors.
