MGM Resorts is discussing making a bid for People, WSJ reports

MGM Resorts (MGM) shares fell 22.9% after People Inc. withdrew a takeover bid. Analysts upgraded MGM to Strong Buy, citing attractive valuation metrics, robust balance sheet, and long-term growth potential despite near-term challenges.

Barry Diller withdrew his $18 billion bid to take MGM Resorts International private, citing financing challenges. MGM shares fell nearly 11% to $33.69. Experts suggest the withdrawal may lead to long-term capital constraints but no immediate job losses. Caesars Entertainment's buyout by Tilman Fertitta was approved.

MGM Resorts (NYSE: MGM) is reportedly considering acquiring People Inc. (NASDAQ: PPLI), its largest shareholder, after People withdrew its $48.30 per share takeover offer. MGM could aim to reduce its float by acquiring People's 27% stake, valued at $2.57 billion. People's shares surged 9.13% in after-hours trading.

Barry Diller's People Inc. withdrew its $18 billion offer to take MGM Resorts private, citing challenges in completing the deal. MGM will continue operating independently. People Inc. holds 26.1% of MGM's stock. MGM shares fell over 8% in after-hours trading, well below the $48.30 offer price.

MGM Resorts is reportedly considering a bid for People Inc., its largest shareholder, which recently withdrew its own takeover bid. People owns a 27% stake in MGM and has a market value of $2.7 billion. MGM may propose a deal in the coming days, but could still change course.

MGM Resorts (MGM) is reportedly considering a bid for People Inc. (PPLI), reversing a prior acquisition attempt by PPLI. PPLI shares rose 13% after-hours, while MGM shares were little changed. PPLI had previously offered $48.30 per share for MGM, but withdrew the bid citing financing and debt concerns. MGM's board expressed excitement about remaining independent. PPLI has a market cap of $2.68B, while MGM is valued at $8.48B.