MGM Resorts is exploring a counterbid for People Incorporated after the media company abandoned its $12.4 billion takeover attempt just 24 hours earlier. What's unfolded here is one of the iGaming sector's most intriguing corporate chess matches, and it's taken a genuinely dramatic turn.

A Stake Worth Playing

Here's where it gets interesting. People already owns roughly 27 percent of MGM, a position it built up during the pandemic stock crash back in 2020. That stake sits at around $2.5 billion right now, which is nearly the entire market capitalisation of People itself at approximately $2.7 billion. By acquiring People, MGM could effectively buy back a significant chunk of its own equity while gaining control of the media company's other assets in the bargain.

That portfolio includes some recognisable brands: People magazine, Food & Wine, Southern Living, plus stakes in Turo and the Daily Beast. For MGM, this creates optionality. The casino operator could retain properties that align with its entertainment strategy whilst offloading others to generate immediate cash.

The Context That Matters

People, previously known as IAC, withdrew its acquisition offer on Wednesday after struggling to arrange financing and a workable deal structure. Barry Diller's company had pitched $48.30 per MGM share, but ultimately the numbers didn't stack up. Diller did signal, however, that strategic alternatives remained on the table. That comment appears to have opened the door for MGM to explore things in reverse.

The market reacted sharply. People shares jumped roughly 9 percent after hours following news of MGM's interest, whilst MGM stock fell over 10 percent in Thursday's regular session after the takeover bid collapsed.

What Comes Next

Any transaction remains speculative at this stage. MGM hasn't confirmed the talks, and People would need to seriously consider whether selling to the company it just tried to acquire actually makes strategic sense. The irony, though, is hard to miss. Within a matter of days, these two firms could complete a deal that reverses the entire power dynamic from this week.

For MGM, the logic stacks up. Major Las Vegas properties like Bellagio, a substantial international casino portfolio, and the BetMGM online operation form a solid foundation. Adding back control of its own shares whilst optionally harvesting People's media assets could unlock real shareholder value.

The industry will be watching closely to see whether negotiators can actually make something work this time around.