Barry Diller’s People Inc. has rescinded its proposal to buy MGM Resorts International, sending shares of the casino giant down roughly 11% on Thursday.
The update comes nearly four months after Diller’s company offered to purchase MGM Resorts for $48.30 per share. People Inc. already owns a roughly 26.1% stake in MGM.
Diller, chairman of People Inc. — formerly known as IAC — attributed the decision to the complicated nature of the deal.
“There are lots of ingredients that go into a proposal of this kind on its way to completion,” Diller said in the press release. “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.”
CNBC’s David Faber reported Thursday that Diller backed off the deal in part because of the significant debt load it would have created for the company.
Still, Diller said he is willing to consider a future deal.
“We at People Incorporated remain open to and interested in the possibility of a strategic transaction with MGM Resorts and look forward to considering a range of alternatives,” he said in the release.
Earlier this week, shareholders of Caesars Entertainment approved an offer from billionaire Tilman Fertitta to acquire the casino company for $17.6 billion. Caesars shareholders will receive $31 per share in cash.
— CNBC’s Contessa Brewer contributed to this report.
