Media mogul’s company offers to buy MGM Resorts in $18B deal

People Incorporated, led by Barry Diller, submitted a non-binding offer to acquire MGM Resorts for more than £13.3 billion ($18 billion), valuing the equity at about £9.2 billion ($12.4 billion) after debt, according to Inc. The cash bid is $48.30 per share for the 73.9% it doesn’t own, a 10.6% premium to MGM’s May 29 close. MGM said its board will review; the deal needs regulatory and competition approvals.

US stocks hit fresh records on Monday as investors weighed US-Iran peace talk optimism and Nvidia’s (NVDA) new laptop chip. The S&P 500 rose nearly 0.3% to above 7,600; the Nasdaq gained about 0.4–0.5%. Nvidia shares jumped over 6%. Oil pared gains to around $92 WTI and $95 Brent. Focus turns to Friday’s nonfarm payrolls.

Stocks closed higher as investors priced a continued US-Iran ceasefire negotiation process. In the US, 84% of 485 S&P 500 firms that reported Q1 beat estimates, with Q1 earnings seen up 12% y/y (about 3% excluding tech), according to Bloomberg Intelligence. US 10-year yields rose to 4.459%. Nvidia gained over 6% on a new chip plan; Taylor Morrison jumped after a ~$8.5B Berkshire Hathaway acquisition offer.

Seaport Research Partners analyst Vitaly Umansky said People Inc.’s bid for MGM (People $48.30/share, valuing MGM at about $18B) may be too low, partly due to undervaluing MGM China and MGM Osaka. He noted MGM China (MGM owns 56%) runs Macau resorts, and MGM Osaka is slated to open in 2030. He said there is “some chance” People could sell these Asia interests after a deal.

Southwest is changing its business model to match shifting customer expectations and tighter margins, ending two free checked bags and moving away from open seating, according to EVP Tony Roach at Fortune’s COO Summit. He said the changes are needed for long-term sustainability. MGM also launched its first all-inclusive package to address value concerns, as Barry Diller proposed an $18 billion takeover while MGM focuses on execution.

SpotGamma says a “volatility spasm” could test the 9-week U.S. stock rally, highlighting a 15,000-lot June/July put diagonal on the Mini-SPX (XSP) that sells June puts to fund longer-dated July downside protection. At the open, U.S. indices were lower as 10-year Treasury yields rose. Berkshire agreed to buy Taylor Morrison for $8.5 billion.