People Inc. pulls the plug on MGM takeover

Publisher retains its 27 per cent of MGM Resorts

People Incorporated, America’s largest publisher, has withdrawn its proposal to purchase all public shares of MGM Resorts International.

People Incorporated Chairman and Senior Executive Barry Diller said:  “There are lots of ingredients that go into a proposal of this kind on its way to completion. We didn’t feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time. What is undimmed is our belief in the future of MGM Resorts. We continue to hold 66.8 million shares representing approximately 27 per cent of MGM Resorts and have total confidence in both the management and the Company’s prospects.” 

Diller added:  “I want to thank the Special Committee and all the MGM Directors for giving us the time and consideration during the process. People Incorporated is doing just fine, with its principal publishing business achieving its 11^th quarter of growth, with plenty of cash to both invest in its business and purchase its stock.”

“We at People Incorporated remain open to and interested in the possibility of a strategic transaction with MGM Resorts and look forward to considering a range of alternatives,” concluded Mr. Diller.

Paul Salem, Chairman of the MGM Resorts Board, said: “The Board remains excited to continue to lead MGM Resorts as a standalone company. Our leading position in Las Vegas, our best-in-class regional properties, and BetMGM’s continued momentum highlight the value we bring to our shareholders. In addition, our international portfolio of MGM China and the significant opportunity ahead with MGM Osaka support a clear path to increasing shareholder value.”