Editor’s note: Este artículo está traducido al español.

Barry Diller’s People Inc. has proposed buying the remaining shares of MGM Resorts International it does not already own, valuing the Las Vegas casino and resort operator at more than $18 billion.

People Inc., formerly known as IAC and owner of publications including People magazine, is offering $48.30 per share in cash for the 73.9% of MGM Resorts it does not already own, it said this morning in a news release. The offer represents a 10.6% premium over MGM Resorts’ Friday closing price of $43.67 and a 30% premium over its volume-weighted average price over the past 90 days.

People Inc. owns 26.1% of MGM Resorts’ outstanding stock, a stake valued at $2.9 billion. The company holds two board seats at MGM Resorts, one of which Diller occupies. If completed, People Inc. would own just over 50.1% of MGM’s equity, and MGM’s current management team would be expected to remain in place.

In a statement, Diller cited MGM Resorts’ resilience against technological disruption as a key factor in the proposed acquisition.

“We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real-world assets that AI cannot easily replicate or disintermediate, and exceptional digital growth opportunities. That conviction has only strengthened over time,” he said. “We continue to believe the market materially undervalues the power and durability of MGM’s assets. We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”

People Inc. began building its MGM stake during the pandemic lockdowns of 2020. In an April 28 letter to shareholders, Diller called MGM stock “wildly undervalued” and said People would sharpen its focus on its MGM stake.

MGM shares rose more than 10% in premarket trading following the announcement, while People Inc. shares rose nearly 3%.

MGM Resorts owns 13 properties in Las Vegas, including the Bellagio, Aria, Luxor, Mandalay Bay and MGM Grand.

“I believe this transaction would deliver significant benefits to the shareholders of both companies,” Diller said in the statement. “MGM shareholders would be given the opportunity to de-risk their investment and realize immediate, attractive value in cash for their shares. We are confident in our ability to execute on a transaction promptly with engagement from the MGM Board of Directors.”

The proposed deal comes on the heels of Caesars Entertainment’s acquisition by Tilman Fertitta’s Fertitta Entertainment in an all-cash merger valued at approximately $17.6 billion, including the assumption of roughly $11.9 billion in outstanding debt. Caesars operates eight Las Vegas properties.