MGM Resorts falls after buyout withdrawal

• MGM Resorts International (NYSE:MGM) shares fell after People withdrew its proposal to acquire all outstanding shares of the casino operator.
• People had proposed buying MGM’s remaining shares for $48.30 each, valuing the company at more than $18 billion.
• MGM has focused on growth from China operations and digital businesses as Las Vegas traffic remains under pressure.

MGM Resorts International (NYSE:MGM) shares fell 8.38% to $34.68 in premarket trading after People withdrew its proposal to acquire the remaining public shares of the casino operator.

People, led by media executive Barry Diller, had proposed purchasing MGM’s outstanding public shares for $48.30 each, valuing the company at more than $18 billion.

People owns about a 27% stake in MGM Resorts and had submitted the proposal as part of a potential acquisition of the company’s remaining shares.

Following the announcement, MGM Resorts' share price fell 8.38% to $34.68 in premarket trading.

MGM has relied on growth from its China operations and digital business segments in recent quarters as visitor activity at its Las Vegas properties has remained slower.

Analysts tracked by LSEG showed that 11 of 24 brokerages rated MGM shares “buy” or higher, 11 rated them “hold,” and two rated them “sell” or lower, with a median price target of $48.30.