MGM shares tumble as Barry Diller withdraws $18B buyout proposal

Barry Diller's People Inc withdrew its proposal to buy the outstanding shares of MGM Resorts International (NYSE:MGM) that it does not already own, sending the casino operator's stock down nearly 9% on Thursday morning. The group proposed in June to acquire the MGM shares for $48.30 a share, a deal that valued MGM at more than $18 billion. "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," Diller said. He added that People's belief in MGM's future remained "undimmed." Diller said People retains "total confidence" in MGM's management and remains open to a strategic transaction with the company. The withdrawal follows several months of negotiations between People and a special committee appointed by MGM's board. MGM said its board remains committed to continuing to lead the company as a standalone business. MGM Resorts board chairman Paul Salem highlighted the company's Las Vegas properties, regional operations and momentum at BetMGM. Salem also cited MGM China and the opportunity at MGM Osaka as supporting a path to increasing shareholder value. Diller, who has viewed MGM as undervalued, had seen a larger stake as a way for People to diversify beyond its core media business, which includes People magazine and Food & Wine.