Diller, who currently controls 26.1% of MGM, previously dismissed the company's market valuation as wildly undervalued in an April letter to shareholders. The proposed price represents a 10.6% premium over MGM’s Friday closing price of $43.67. Investors reacted swiftly to the news, pushing MGM shares up more than 10% in premarket trading, while People Inc. saw its own stock climb nearly 3%.

This takeover attempt arrives at a difficult juncture for the casino giant. While MGM owns properties accounting for 40% of the Las Vegas Strip, the operator has faced stagnant foot traffic in Nevada. Growth has instead shifted toward its Macau operations and the BetMGM digital sportsbook, a segment that has become a focal point for industry analysts. For Diller, the acquisition marks a pivot from digital media toward the volatile tourism and travel sector, mirroring a broader trend of industry consolidation that included Tilman Fertitta’s recent $17.6 billion bid for Caesars Entertainment.