People Inc. Rescinds Buyout Bid for MGM Resorts, Sinking Shares 11%

Shares of MGM Resorts International fell roughly 11% on Thursday after Barry Diller's People Inc. formally rescinded its proposal to acquire the casino giant.

The withdrawal comes nearly four months after People Inc. offered to acquire MGM Resorts for $48.30 per share in a take-private transaction. People Inc., formerly known as IAC, already holds an existing stake of approximately 26.1% in MGM Resorts.

Diller, who serves as chairman of People Inc., attributed the decision to the structural difficulty of completing the transaction.

"There are lots of ingredients that go into a proposal of this kind on its way to completion," Diller said in a press release. "We didn't feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time."

According to reporting by David Faber for CNBC Business , Diller backed away from the transaction in part due to the significant debt load the acquisition would have generated for the company.

Despite dropping the buyout bid, Diller left open the prospect of future cooperation. "We at People Incorporated remain open to and interested in the possibility of a strategic transaction with MGM Resorts and look forward to considering a range of alternatives," he said in the release.

The decision comes amid wider consolidation in the gaming industry. Earlier this week, shareholders of rival casino operator Caesars Entertainment voted to approve a $17.6 billion cash takeover by billionaire Tilman Fertitta at $31 per share.