Published on: June 2, 2026, 01:31h.
Updated on: June 2, 2026, 01:31h.
- Diller’s People Inc. is proposing an acquisition price of $48.30 per share for MGM Resorts, while shares trade above this valuation.
- There’s no certainty that MGM will accept the proposal.
- Market analysts suggest that it’s unlikely other bids will surface.
Barry Diller’s People Inc. (NASDAQ: IAC) announced an acquisition offer of $48.30 per share for MGM Resorts International (NYSE: MGM) on Monday. This values the casino entity—which Diller’s group already owns 26% of—at around $18 billion. However, experts believe this offer may be undervalued. The challenge for any potential competing bidders lies in surpassing Diller’s proposal.
MGM shares were priced at $50.69 at yesterday’s close, indicating that some investors believe the casino’s worth surpasses Diller’s bid. Prior to the formal announcement of the MGM acquisition, there was speculation that Tilman Fertitta’s $17.6 billion bid for Caesars Entertainment (NASDAQ: CZR) suggested MGM’s valuation could reach between $55 and $60 per share based on a 6.6x enterprise value (EV)/earnings before interest, taxes, depreciation, amortization, and rent costs (EBITDAR) multiple. Diller’s offer reflects a 5.5x EV/EBITDAR multiple.
“Using a 6.6x multiple, MGM’s valuation could rise to $69/share (according to our 2027 estimates). However, we realize that MGM is a multifaceted business with various components, complicating direct comparisons,” notes Truist Securities analyst Barry Jonas.
His price target for MGM stands at $55.
Diller’s MGM Proposal: Viewed as ‘Too Modest’
MGM, the premier casino operator on the Las Vegas Strip, acknowledged it has received Diller’s acquisition offer but warned investors that “there’s no assurance that this or any future proposal will lead to an agreement or transaction,” nor can they confirm the timing, price, or other specifics of any potential accord.
This means that while MGM has a proposal on the table, it hasn’t formally accepted or declined the offer. Notably, Diller’s stake in MGM gives him leverage, making competing bids appear unlikely. Analyst Steven Wieczynski from Stifel characterized Diller’s offer as “too conservative,” suggesting that the 26% ownership makes it challenging for other private equity players to propose better terms.
Nonetheless, Wieczynski contends that Diller’s offer fails to adequately capture the value of MGM’s 56% stake in MGM China (providing exposure in Macau), the company’s prime position in premium Strip integrated resorts, and the growth potential linked to the anticipated Osaka casino development. He also noted comparisons to Caesars’ valuation.
“It’s worth mentioning that the price accepted for CZR reflected nearly a 50% premium over the stock’s 30-day weighted average closing price (prior to acquisition rumors), effectively double the approximately 24% premium of People’s offer for MGM,” adds Wieczynski. “In this context, it’s hard to see long-term MGM investors or the Board expressing enthusiasm for a bid of $48.30/share.”
Uncertain Outlook for Competing MGM Bidders
Currently, MGM’s stock has dipped to levels just above Diller’s $48.30 acquisition offer, hinting that market participants recognize the challenge of attracting other bidders. However, this does not eliminate the possibility of MGM making a counteroffer.
Moreover, considering Diller’s media company is MGM’s largest shareholder and holds two board seats, potential acquirers might choose to hold back.
“If other bidders do come forward, we anticipate a tricky path due to Diller’s voting power,” warns David Katz from Jefferies.