IAC Formalizes MGM Buyout at $48.30 Per Share in $18 Billion All-Casino Acquisition Proposal

The Quick Take

• IAC/InterActiveCorp formalized its acquisition proposal for MGM Resorts at $48.30 per share, providing specific per-share pricing for the previously announced $18 billion buyout bid.
• The $48.30 per share price establishes the merger arbitrage spread and deal reference price, enabling institutional arb funds to calculate risk-adjusted returns on the transaction.
• MGM shareholders and the board can now evaluate whether the $48.30 offer represents adequate value versus the company's standalone intrinsic value and competitive bidding scenarios.

IAC/InterActiveCorp provided specific per-share pricing of $48.30 for its acquisition proposal for MGM Resorts International, formalizing the deal reference price for an $18 billion all-cash buyout that was previously announced. The $48.30 per share figure is the critical commercial number for merger arbitrage analysis — it defines the deal spread, the implied premium over MGM's undisturbed price, and the risk/reward profile for arb funds that buy the target at a discount to the deal price and profit when the transaction closes. Once deal pricing is public, the focus shifts from 'will a deal happen' to 'will this deal close at these terms or better.'

MGM's board is now in a formal evaluation process where it must assess whether $48.30 constitutes fair value for shareholders relative to standalone intrinsic value and any competing offer that might emerge. At $48.30, the MGM board will likely seek a fairness opinion from an independent investment bank — either endorsing IAC's price or establishing a higher reference value that could support a counter-offer demand. Private equity firms with gaming experience (Apollo, Blackstone, Apollo's Caesars Holdings history) could emerge as competing bidders if the board signals dissatisfaction with IAC's price. MGM's real estate assets — particularly the Las Vegas Strip properties — are worth significant per-share value in a break-up scenario that a simple buyout price may undervalue.

Investors and arb funds should track the MGM deal spread — current MGM share price versus $48.30 — as the real-time probability signal for deal completion. A spread below 5% implies high deal confidence; above 10% suggests meaningful risk of deal failure or price renegotiation. Watch for MGM board response timing — a rapid acceptance suggests the $48.30 price is viewed as fair; extended silence or request for more information suggests the board is seeking either competing bids or price improvement. The key regulatory milestones are state gaming commission approvals in Nevada, Mississippi, Maryland, Massachusetts, and the other states where MGM holds licenses.

Synthesized from 2 sources.