LAS VEGAS (FOX5) — People Incorporated has announced Monday a newly submitted proposal to acquire all outstanding shares of MGM Resorts International in an apparent takeover bid.

According to a release, People Inc. confirmed it would be offering to acquire all company shares it does not already own for $48.30 per share in cash. Currently, People Inc. currently owns 26.1% of MGM’s outstanding common stock.

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CNBC reports that the proposal will value MGM at $18 billion.

Barry Diller, chairman and senior executive of People Inc., said the company began investing in MGM nearly six years ago.

“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,” Diller said. “That conviction has only strengthened over time.”

Diller said the market materially undervalues MGM’s assets and that there is a compelling opportunity to support MGM’s next phase of growth.

“I believe this transaction would deliver significant benefits to the shareholders of both companies,” Diller said. “MGM shareholders would be given the opportunity to de-risk their investment and realize immediate, attractive value in cash for their shares.”

People Inc. expects to fund the transaction with a combination of existing cash on hand at People Inc., MGM, additional debt and equity funding commitments.

EN ESPAÑOL: People Inc. propone la adquisición de MGM Resorts por $18,000 millones

The company expects it will own just over 50.1% of the equity of MGM, with other investors holding minority interests. Those investors may include existing MGM shareholders.

In a letter to MGM’s board of directors, Diller said People Inc. believes MGM’s assets and businesses are not currently realizing their full potential in the public markets and that it will be difficult to correct this situation in MGM’s current form as a public company.

The proposal is subject to customary conditions, including the negotiation and execution of a mutually satisfactory binding agreement. The transaction would not be subject to any financing condition.

The transaction would be subject to limited competition approvals and applicable gaming regulatory approvals.

People Inc. expects MGM’s current management team to continue to lead the business.

Diller confirmed People Inc. has no intention to sell its existing ownership stake in MGM or to pursue or vote in favor of any merger or other transaction that would result in a change in control to another party.

People Inc., previously known as IAC, is the owner of more than 40 media brands including PEOPLE, Food & Wine, Travel + Leisure, InStyle, Better Homes & Gardens and Southern Living. Barry Diller is also known for co-founding Fox News Broadcasting alongside Rupert Murdoch.

MGM has confirmed that it has received the proposed bid and will review it to determine what the next best steps are.

“The Company cannot provide assurances that such proposal or any subsequent proposal will result in an agreement or a transaction being reached or, if so, as to the timing, price or other terms and conditions of any such agreement,” MGM shared in a release. “The Company remains focused on advancing its position as the world’s premier gaming entertainment company.”

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