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- Barry Diller’s company recently abandoned its massive eighteen billion dollar buyout proposal to take casino operator MGM Resorts International private.
- The collapsed deal means the gaming business will remain an independent owner of Borgata and the BetMGM sports betting brand.
Barry Diller’s People, Inc. has abandoned its $18 billion bid to buy MGM Resorts International, ending a takeover attempt that would have given the publishing billionaire control of Borgata’s parent company.
The move matters for U.S. gambling because MGM remains the owner of Borgata Hotel Casino & Spa in Atlantic City and a 50/50 partner in BetMGM, one of the country’s largest online betting brands. MGM said after the bid ended that it still plans to operate as a standalone company.
People launched the offer in June and had proposed paying $48.30 per share in cash for all MGM shares it did not already own. If completed, the deal would have pushed Diller’s ownership to just over 50.1%, giving him a controlling stake.
In a statement cited by the Press of Atlantic City, Diller said, “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.”
He also said the company still believes in MGM’s future. “What is undimmed is our belief in the future of MGM Resorts. We continue to hold 66.8 million shares representing approximately 27% of MGM Resorts and have total confidence in both the management and the company’s prospects.”
MGM says it will remain a standalone company
MGM responded by reaffirming its existing strategy rather than signaling any immediate alternative transaction.
Board chairman Paul Salem said, “The board remains excited to continue to lead MGM Resorts as a standalone company.” He added that MGM’s “leading position in Las Vegas, our best-in-class regional properties, and BetMGM’s continued momentum highlight the value we bring to our shareholders.”
According to the source report, MGM owns 31 hotel and casino destinations globally. Its BetMGM joint venture offers U.S. sports betting and online betting in North America through brands including BetMGM and partypoker.
Why the story matters for Borgata and Atlantic City
While the failed bid does not change Borgata’s day-to-day operations, it removes the prospect of an ownership change at the company that controls one of Atlantic City’s strongest retail and online casino properties.
The Press of Atlantic City reported that Borgata won more than $800 million from in-person gamblers in Atlantic City last year, up 8.5% from 2024. The next closest competitor, Hard Rock Hotel & Casino Atlantic City, was cited at $550 million.
The report also noted that Borgata has two of Atlantic City’s top four internet gambling brands in BetMGM and Borgata.
For now, the clearest next step is that MGM stays independent, while Diller remains one of its largest shareholders and said he is still open to a possible future deal involving the company.
Source: As reported by Wayne Parry.
