Long-term shareholder argues repurchasing PPLI shares at a substantial discount to intrinsic value would create significantly greater shareholder value than acquiring shares of MGM at a premium.

WESTPORT, Conn., Aug. 3, 2026 /PRNewswire/ — Yakira Capital Management, Inc. (“Yakira”), a long-term shareholder of People Incorporated (PPLI), today released the following open letter to the PPLI Board of Directors regarding its proposed acquisition of the remaining shares of MGM Resorts International (MGM):

An Open Letter to the Board of Directors of IAC

Yakira Capital Management has been a long-term shareholder of People Incorporated (PPLI) and has long admired the value generated under Barry Diller’s leadership. For decades, PPLI distinguished itself as one of the market’s most disciplined wealth creators, consistently identifying unique opportunities and successfully investing and developing these companies.

In recent years we have been concerned about the direction of the company, so much so that we have frequently asked to speak to Mr. Diller and been denied an audience each time. As a result, we feel compelled to publicly express our concerns regarding the proposal to acquire the remaining shares of MGM Resorts International (MGM). Our main concern is that PPLI is not maximizing the use of its assets.

The proposed MGM transaction appears inconsistent with the principles that historically made PPLI successful, developing new companies with evolving technologies, not leading a multibillion-dollar LBO of a mature company in a well-established, competitive industry. Compounding our concern, several of PPLI’s more recent capital allocation decisions have failed to produce the level of value creation that shareholders came to expect from the company during its most successful years.

While Barry Diller’s long-term record as a value creator is undeniable, recent investments in Meredith, Care.com and Vimeo have generated mixed results, consumed substantial capital, and have yet to demonstrate returns commensurate with the risks undertaken. Specifically, the acquisition of Meredith serves as an important example. Although management deserves credit for stabilizing and improving the business, even after years of effort, many investors and analysts would argue that the value of the assets today remains below the cost basis. This experience should encourage greater caution, not greater confidence, when evaluating another transformative transaction.

The original purchase of MGM shares, on the heels of COVID, was extremely opportunistic and exquisitely timed. As the crisis ended, MGM stock doubled quickly. However, after five years and over $250M of additional purchases, the stock was essentially unchanged from that initial run prior to the MGM proposal. Why undertake another large, late stage, and potentially risky transaction when PPLI shares were being assigned a negative valuation? PPLI shares were trading below the combined value of their stake in MGM and the net cash held at the holding company. This negative valuation is even before calculating any value for the entire private portfolio plus the headquarters.

When a company is trading at a substantial discount to the value of its own assets, indeed a negative valuation, the burden of proof for any large acquisition should be exceptionally high. Management must demonstrate not simply that MGM is an attractive asset, but that acquiring MGM at a PREMIUM offers a superior risk-adjusted return to repurchasing PPLI shares at a NEGATIVE VALUATION. Using unaffected prices one week prior to the announcement, with PPLI trading at $42.03 and MGM trading at $38.40, our calculation showed a sum of the parts value of over $71. However, if PPLI simply sold its MGM shares and used the proceeds to retire its own stock, the sum of the parts value jumps to over $190.

The timing is also particularly difficult to understand. Economic uncertainty remains elevated, consumer spending is slowing, and the long-term competitive landscape for online gaming continues to evolve. At the same time, the market is signaling that MGM shareholders expect a higher price, meaning any successful acquisition would likely require an even greater premium. Management’s responsibility should not be to build a larger company. It should be to maximize value per share.

The past several years, management correctly argued that PPLI trades at a substantial discount to the value of its underlying assets and repeatedly highlighted this disconnect in shareholder communications and earnings discussions. PPLI worked to simplify its structure, assets were sold and complexity reduced. We agreed with and supported management’s efforts to reduce the persistent gap between PPLI’s market value and the value of its underlying holdings. In recent quarters, prior to the MGM proposal, these efforts were starting to succeed as the perpetual discount began to narrow.

Now management appears prepared to transform a cash-rich company with a relatively simple corporate structure into a far more complex and leveraged enterprise, centered around a mature gaming business. The result would be greater financial risk, reduced flexibility, and increased exposure to a business that public market investors have discounted for years. The emergence of prediction markets and event-contract exchanges introduces a potentially disruptive alternative to traditional online sports books, creating additional uncertainty around the long-term economics of operators such as BetMGM.

Even if MGM is a great purchase and the stock increases 50% over the next couple of years, it would still be more accretive for PPLI to purchase its own shares. Given the risks involved, we implore the board and management to reverse course, withdraw the proposal, continue simplifying the company and aggressively repurchase our own shares.

Sincerely,

Bruce Kallins
President

About Yakira Capital Management, Inc.

Yakira Capital Management, Inc. is an investment advisor based in Westport, CT. Founded in 1997, Yakira employs a market-neutral, event-driven arbitrage strategy to invest opportunistically across the capital structure over varying market cycles. Bruce Kallins is President & Portfolio Manager of Yakira.

Contact:

Duane Biasi
(203) 349-8191

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SOURCE Yakira Capital Management