MGM Reportedly Weighs Bid to Acquire People Inc. in Stunning Role Reversal
MGM sits 15% above its 52-week low of $29.185 on elevated volume (7.1× avg).
Summary
MGM Resorts is reportedly discussing making an offer to acquire People Inc., the company that just withdrew its own $12.4 billion bid for MGM. The Wall Street Journal reports MGM could make the offer in the coming days. People Inc. shares jumped 13% to $40.59 in after-hours trading on the news. The deal would let MGM repurchase People's roughly 27% stake in MGM while acquiring other assets. This follows People Inc.'s withdrawal of its $48.30 per share offer for MGM just one day earlier. The potential transaction would be a major strategic shift for MGM and could reshape its ownership structure.
At the time of this announcement, MGM was trading at $33.57 on NYSE in the Trade & Services sector, with a market capitalization of approximately $8.5B. The 52-week trading range was $29.19 to $51.59. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.