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Casino Giant MGM Eyes Major Stake in Media Firm People Inc.
25 Sep
Summary
- MGM Resorts is reportedly considering a bid to acquire People Inc.
- People Inc. recently withdrew its own proposal to buy MGM Resorts.
- People Inc. has been MGM Resorts' largest shareholder since 2020.
MGM Resorts International is reportedly exploring the possibility of making a bid to acquire People Inc. This development emerged on Thursday, the day after People Inc. withdrew its own proposal to purchase MGM Resorts. People Inc.'s shares saw a notable increase of 9% in after-hours trading following the news.
If MGM Resorts decides to proceed with a formal offer, it could be presented in the upcoming days. This potential acquisition marks a surprising strategic maneuver by MGM, aiming to take over the company that has been its largest shareholder for several years. People Inc. initially began building its stake in MGM in 2020, during a period when the casino operator faced significant challenges due to pandemic-related closures and travel restrictions.
The media company's current stake in MGM, representing approximately 27%, is reportedly valued similarly to its own market capitalization. Neither MGM nor People Inc. immediately responded to requests for comment regarding these discussions.
