Posted on: June 2, 2026, 07:22h.
Last updated on: June 2, 2026, 07:22h.
- Analyst says there’s “some chance” Diller’s People Inc. could sell MGM’s Japan, Macau interests in a takeover
- MGM China is an “interesting piece in the puzzle
- MGM Osaka is scheduled to open in 2030
If Barry Diller’s People Inc. (NASDAQ: IAC) is successful in acquiring MGM Resorts International (NYSE: MGM), the buyer could look to sell the casino operator’s stakes in MGM China and an upcoming integrated resort in Japan.
That idea was floated by Seaport Research Partners Vitaly Umansky in a new report. As is the case with some of his sell-side colleagues, Umansky agrees that People’s $48.30 a share bid for MGM, which values the target at $18 billion, is too low and some of that perceived discount may be attributable to the suitor not adequately valuing MGM China and MGM Osaka.
Should an MGM deal be consummated, we believe there is some chance that People Inc. may look to divest ownership in MGM China (and potentially in MGM Japan as well),” notes Umansky.
The Las Vegas-based casino operator owns 56% of MGM China, which runs two integrated resorts in Macau — MGM Cotai and MGM Macau. Diller’s media company hasn’t publicly disclosed in divesting either of MGM’s Asia interests.
Putting a Price on MGM’s Macau, Japan Interests
Using back-of-the-envelope math, MGM’s 56% stake in the Macau arm is worth $3.04 billion. Based on the $8.9 billion price tag of MGM Osaka, the US company’s 40% stake works out to $3.56 billion.
Combined, that’s $6.6 billion, or more than a third of what Diller is offering for MGM. It’s possible, if not likely, that if People pursued divesting MGM China, the pool of potential buyers would be deep owing to the difficulty operators face when it comes to gaining access to Macau.
“MGM China becomes an interesting piece in the puzzle that is MGM,” opines Umansky. “It has significantly outperformed the Macau market over the last few years and retained more market share over the past few quarters than we had expected.”
Generating adequate value for MGM Osaka in a sale may be more difficult simply because that venue isn’t scheduled to open until 2030, meaning it has no track record. That implies prospective buyers would be purchasing expectations, not tangible results.
The analyst added People is serious about acquiring MGM, noting the media company is “frustrated” by the gaming stock’s performance and that it would like to highlight the stock’s value appeal to the broader market.
Another Potential Transaction to Monitor
In the wake of Diller’s offer for MGM, some analysts are pondering the fate of BetMGM — a 50/50 joint venture between the casino giant and Entain Plc (OTC: GMVHY). Though neither Diller nor his company have openly discussed the matter, the prevailing wisdom suggests that if he gains control of MGM, it’s possible he’ll want full ownership of the digital gaming business.
That’s plausible on multiple levels. When MGM attempted to acquire Entain outright in 2021, Diller was open to the idea of financing a portion of the transaction. His company also has an established, enviable track record of acquiring internet-based businesses, reshaping those entities into better-positioned, more profitable companies.
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