People Inc., formerly IAC, has proposed a takeover of MGM Resorts International in a deal that reportedly values the casino operator at more than $18 billion.
The bid was put forward on Monday by People Inc. chairman Barry Diller, who said he believes MGM's assets are materially undervalued by the market.
People Inc. began investing in MGM in 2020 and currently owns 26.1% of MGM's outstanding common stock.
The proposed deal would take MGM private, with People Inc. owning 50.1% of the business. Other investors, which could include some existing MGM shareholders, would hold minority interests.
People Inc. said it expects MGM’s current management team would continue to lead the business following a transaction.
"We began investing in MGM nearly six years ago because 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," said Diller in a statement. "That conviction has only strengthened over time."
MGM Resorts operates 31 hotels and casinos globally, including 13 on the Las Vegas Strip. Among them are the Bellagio, MGM Grand, Mandalay Bay, Aria and The Cosmopolitan.
The company also holds a 50-50 venture in BetMGM, which offers sports betting and online gaming in North America, and is currently pursuing an resort development in Japan.
MGM said its board "will carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the company and all of its shareholders."
The bid comes just days after Fertitta Entertainment announced a $17.6 billion deal to acquire Caesars Entertainment.
People Inc. is the parent company of more than 40 media brands, including People, Travel + Leisure, Food & Wine, Southern Living and Better Homes & Gardens.