\n Posted on: June 2, 2026, 07:22h.\u00a0\n <\/p>\n
\n Last updated on: June 2, 2026, 07:22h.\n <\/p>\n
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- Analyst says there\u2019s \u201csome chance\u201d Diller\u2019s People Inc. could sell MGM\u2019s Japan, Macau interests in a takeover<\/strong><\/li>\n
- MGM China is an \u201cinteresting piece in the puzzle<\/strong><\/li>\n
- MGM Osaka is scheduled to open in 2030<\/strong><\/li>\n<\/ul>\n
If Barry Diller\u2019s People Inc. (NASDAQ: IAC) is successful in acquiring MGM Resorts International (NYSE: MGM), the buyer could look to sell the casino operator\u2019s stakes in MGM China and an upcoming integrated resort in Japan.<\/p>\n
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MGM\u2019s stake in MGM China could be sold if Barry Diller acquires the casino giant, says an analyst. (Image: MGM Resorts International)<\/figcaption><\/figure>\n 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\u2019s $48.30 a share bid for MGM, which values the target at $18 billion, is too low<\/a> and some of that perceived discount may be attributable to the suitor not adequately valuing MGM China and MGM Osaka.<\/p>\n
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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),\u201d notes Umansky.<\/p>\n<\/blockquote>\n
The Las Vegas-based casino operator owns 56% of MGM China, which runs two integrated resorts in Macau \u2014 MGM Cotai and MGM Macau. Diller\u2019s media company hasn\u2019t publicly disclosed in divesting either of MGM\u2019s Asia interests.<\/strong><\/p>\n
Putting a Price on MGM\u2019s Macau, Japan Interests<\/h2>\n
Using back-of-the-envelope math, MGM\u2019s 56% stake in the Macau arm is worth $3.04 billion. Based on the $8.9 billion price tag of MGM Osaka<\/a>, the US company\u2019s 40% stake works out to $3.56 billion.<\/p>\n
\nCombined, that\u2019s $6.6 billion, or more than a third of what Diller is offering for MGM<\/a>. It\u2019s 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.<\/p>\n<\/div>\n
\u201cMGM China becomes an interesting piece in the puzzle that is MGM,\u201d opines Umansky. \u201cIt 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.\u201d<\/strong><\/p>\n
Generating adequate value for MGM Osaka in a sale may be more difficult simply because that venue isn\u2019t scheduled to open until 2030, meaning it has no track record. That implies prospective buyers would be purchasing expectations, not tangible results.<\/p>\n
The analyst added People is serious about acquiring MGM, noting the media company is \u201cfrustrated\u201d by the gaming stock\u2019s performance and that it would like to highlight the stock\u2019s value appeal to the broader market.<\/p>\n
Another Potential Transaction to Monitor<\/h2>\n
In the wake of Diller\u2019s offer for MGM, some analysts are pondering the fate of BetMGM \u2014 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\u2019s possible he\u2019ll want full ownership of the digital gaming business.<\/p>\n
That\u2019s plausible on multiple levels. When MGM attempted to acquire Entain<\/a> 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.<\/p>\n<\/div>\n
- MGM China is an \u201cinteresting piece in the puzzle<\/strong><\/li>\n