Barry Dillard’s People Inc. offers to buy casino giant MGM Resorts $48.30 per share in cash.
MGM is the company that operates major Las Vegas properties such as the Bellagio and Aria.
MGM stock rose about 15% in midday trading Monday. Shares in Mr. Diller’s company rose 2%.
Mr. Diller, who is already a director of MGM Resorts, said in a letter to MGM’s board that he intends to decline the board’s action regarding the proposed transaction.
People Inc. (formerly known as IAC) owns approximately 26.1% of MGM’s stock.
“We began investing in MGM nearly six years ago because we believed it was a rare kind of business: one with real-world assets and extraordinary digital growth opportunities that AI cannot easily replicate or disintermediate,” People Chairman Diller said in a news release.
“We continue to believe that the market significantly underestimates the strength and durability of MGM’s assets,” he said. “We believe that MGM’s management team is excellent and that we have an attractive opportunity to support MGM’s next phase of growth and maximize its value.”
CNBC’s Andrew Ross Sorkin previously reported that an offer could come as early as Monday.
