Barry Diller Puts $18B on the Table in a Bid for MGM

The owner of the Bellagio and Aria just got a big-money overture from one of its largest shareholders. Barry Diller's People Inc. has proposed buying MGM Resorts for $48.30 a share in cash, a move that sent MGM stock up about 11% in early Monday trading; shares of People, formerly known as IAC, rose around 2%, reports CNBC. The offer values MGM at $18 billion, notes the Hollywood Reporter.

People already holds roughly 26% of MGM, and Diller sits on MGM's board—but he told directors that he'll step aside from board deliberations on the offer. In a statement, Diller said People first invested nearly six years ago because MGM combines hard-to-replicate real-world assets with strong online growth potential, arguing investors are undervaluing the casino operator's portfolio. He praised MGM's leadership and pitched the deal as a way to back the company's "next phase of growth" and "unlock its full value." CNBC had reported an offer could arrive as soon as Monday.