Sept 24 (Reuters) – MGM Resorts International is discussing making a bid to purchase Barry Diller’s People Inc, the Wall Street Journal reported on Thursday, a day after People Inc withdrew its proposal to buy MGM Resorts.
New York-based People’s shares rose 9% after the bell.
If it decides to proceed, MGM could make its proposal in the coming days, the report added, citing people familiar with the matter.
The move would mark an unusual attempt by MGM Resorts to acquire its longtime largest shareholder, whose approximately 27% stake is valued at nearly the same amount as the media company’s own market capitalization, the WSJ report said.
Diller began building a stake in MGM in 2020, when the casino operator’s shares were battered by closures and travel restrictions due to the COVID-19 pandemic.
People, formerly IAC, is a digital media and holding company that owns brands including People, Food & Wine, Southern Living and the Daily Beast.
The company has spent recent years streamlining its portfolio around its core publishing operations and its investment in MGM Resorts, where it built a sizeable stake after Diller identified the casino operator as undervalued and as an opportunity to diversify beyond media.
Last month, People’s second-quarter results pointed to improving profitability at its publishing business, despite pressure on web traffic from AI-driven changes in search, though investors remained largely focused on the value of its MGM stake.
MGM did not immediately respond to a Reuters request for comment. People declined to comment.
(Reporting by Natalia Bueno Rebolledo in Mexico City and Aatreyee Dasgupta in Bengaluru; Editing by Maju Samuel)
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