Barry Diller’s People Inc has withdrawn its proposal to acquire MGM Resorts International and take the casino operator private, ending negotiations that had continued for several months.

People Inc submitted the proposal on June 1, offering $48.30 in cash for each MGM share covered by the transaction. The deal valued MGM Resorts at more than $18 billion, including debt. People already owns roughly 27% of the casino company, making it one of MGM’s largest shareholders.

MGM shares closed regular Wednesday trading at $37.85 before falling sharply in extended trading following news that the takeover attempt had ended. The proposed $48.30 offer represented a sizable premium over MGM’s market price when the withdrawal became public.

MGM will now continue operating independently, with its board pointing to the company’s U.S. casino portfolio, BetMGM and international operations as important parts of its strategy.

People Inc Ends Months of Takeover Talks

According to Reuters, People Inc withdrew the offer on Wednesday after spending months pursuing an agreement with MGM Resorts. Diller’s company had started building its position in MGM in 2020, when COVID-19 closures and travel restrictions placed heavy pressure on casino stocks.

People Inc, formerly known as IAC, gradually increased its investment and eventually accumulated tens of millions of MGM shares. Diller viewed the casino operator as undervalued and saw the investment as a way for People to expand beyond its publishing operations.

Diller explained the decision to end the takeover effort by pointing to the difficulties involved in completing the transaction.

“There are lots of ingredients that go into a proposal of this kind on its way to completion.

“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.”

People has retained its MGM investment despite withdrawing the acquisition proposal. Diller said the company continues to own 66.8 million shares, representing approximately 27% of MGM Resorts.

“What is undimmed is our belief in the future of MGM Resorts. We continue to hold 66.8 million shares representing approximately 27 percent of MGM Resorts and have total confidence in both the management and the company’s prospects.”

Diller also thanked MGM’s special committee and directors for their involvement in the negotiations. People remains open to considering another strategic transaction involving MGM, although no alternative deal has been announced.

People’s core publishing operations include its namesake publication and Food & Wine. Diller said the publishing business has recorded an 11th consecutive quarter of growth, while the company retains cash for investment and share repurchases.

His interest in MGM also follows his earlier expansion into travel through Expedia. IAC acquired Expedia in 2002 before developing the business and later spinning it off.

MGM Resorts Plans to Continue Independently

MGM formed a special board committee that spent several months negotiating with People and reviewing the proposal on behalf of shareholders.

With those talks now finished, MGM Chairman Paul Salem said the company intends to continue pursuing its existing strategy.

“The Board remains excited to continue to lead MGM Resorts as a standalone company,” Salem said.

MGM holds a major position on the Las Vegas Strip and operates regional casino properties across the United States. Its portfolio also includes its interest in online gaming and sports betting operator BetMGM.

The company has faced weaker foot traffic in Las Vegas and has increasingly looked toward its international and digital businesses for growth. MGM also controls 56% of MGM China Holdings, which operates MGM MACAU and MGM COTAI.

MGM’s plans in Asia extend to Japan, where the company and its local partners are developing MGM Osaka. The integrated resort carries a projected cost of JPY1.51 trillion, equivalent to about $9.54 billion based on current figures, and is scheduled to open in 2030.

Salem said MGM sees its Macau operations and the Osaka project as contributors to future shareholder value.

The original takeover structure would have left People with just over 50.1% of MGM’s equity, while other investors would have retained minority interests. MGM would have become a private company under People’s control.

Some analysts had questioned whether the proposed valuation adequately reflected MGM’s longer-term assets, particularly the potential contribution from the Osaka development. Speculation had also emerged about possible changes to MGM’s Asian holdings if Diller gained control, although the transaction never reached that stage.

MGM Shares Fall Following Withdrawal

Investors reacted quickly after the proposed acquisition collapsed. MGM shares dropped roughly 8% in after-hours trading, trading near $34.80 following a regular-session close of $37.85.

The stock had already moved well below People’s $48.30 offer before the withdrawal. MGM shares had declined by nearly 14% during the preceding month, widening the gap between the trading price and Diller’s proposed acquisition price.

People’s decision ends the current attempt to take MGM private, although Diller has left open the possibility of another form of transaction involving the two companies.

For MGM, the immediate focus returns to its standalone operations. The company continues to rely on its Las Vegas presence while developing its international portfolio and digital business.

People also remains a significant MGM shareholder following the end of the bid. Diller has given no indication that the company plans to reduce its stake, and his comments following the withdrawal expressed continued confidence in MGM’s management and future prospects.