Below is an important message from one of our highly valued sponsors. Please read it carefully as they have some special information to share with you.
Dear Reader,
When this man warned of the 2008 crisis two years before it ever happened…
The CIA began circulating his warning among its senior staff.
And his full thesis was so in depth that it appeared in the CIA journal “Studies in Intelligence”.
That information remains classified to this day.
Even still, in 2016 when he went on national television to predict the election of Donald Trump…
Most people tried to dismiss him saying that “Hillary is ahead in every poll”…
But events shaped up just the way he said.
Then in 2019, a full 4 months before the coronavirus hit..
He said that a global pandemic could be the cause of the next financial crisis…and that a crisis of this proportion would happen with “near 100% certainty” within the next few years…
Most people thought he finally lost it.
But we all know what happened next…the world was nearly brought to its knees by this “unforeseen” event.
Now this former advisor to the CIA and the Pentagon is issuing a shocking new warning.
One that has to do with the brewing bubble in AI – and an event set to take place just DAYS from now.
If you have money in the markets, or wealth to protect, then you need to heed his warning.
Because once this crisis hits…it will already be too late.
>>> Click Here to See His New Warning <<<
Regards,
Matt Insley
Publisher, Paradigm Press
MGM May Buy the Company That Tried to Buy It
The clearest lesson from this week on the Las Vegas Strip is that in a live deal situation, the direction of a bid can reverse in 48 hours, and traders who anchor to the original story get hurt.
Barry Diller’s People Incorporated withdrew its proposal to buy MGM Resorts International on September 23. The stock selloff hit in the next session: shares of the casino giant fell about 9% on Thursday, September 24, as Reuters reported. The withdrawal came nearly four months after Diller’s company offered to purchase MGM Resorts for $48.30 per share.
Then, before Friday’s open, the tables turned again. MGM Resorts International stock edged higher in Friday premarket trading after a report said the casino operator is considering a bid for People Incorporated, which owns roughly 27% of MGM. Following the report, People Incorporated stock jumped more than 8% in premarket trading. MGM could make a proposal in the coming days, but it could also decide against a deal, the Wall Street Journal reported, citing people familiar with the matter.
The structural logic here is worth understanding. The transaction would carry significant structural implications, as People Incorporated currently holds a roughly 27% stake in MGM. For MGM, acquiring Diller’s conglomerate could serve as a strategic mechanism to execute a massive share buyback while simultaneously acquiring People’s broader asset portfolio.
That conglomerate discount is what makes the trade intellectually interesting. MGM’s market capitalization was about $8.5 billion at the latest close. People Incorporated’s market capitalization was about $2.7 billion as of September 24. So the market is pricing People’s magazines, its stake in car-sharing platform Turo, and everything else it owns at a relatively small increment over the value of its MGM stake. If MGM can absorb People at or near that valuation, it effectively retires a large slice of its own float at a discount.
Meanwhile, Caesars is already gone. At a special stockholder meeting on September 22, Caesars shareholders voted to approve Fertitta Entertainment’s acquisition of the resort and casino operator. Holders of 143,277,939 shares, representing 70.3% of the company’s outstanding common shares, were represented in person or by proxy at the meeting, and a majority voted in favor of the $17.6 billion deal. Caesars shareholders are slated to receive $31 in cash for each outstanding share, and they would receive additional per-share compensation if the deal closes after June 26, 2027, as laid out in the merger agreement. For the deal to close, Fertitta must still obtain antitrust clearance and other regulatory approvals.
Two major Strip operators, two very different deal structures, both moving in the same week. That kind of sector-level consolidation changes the competitive landscape in ways that ripple through regional operators and online gaming platforms like BetMGM for quarters afterward.
The trader’s lesson from this week is about patience with deal risk. MGM fell hard when Diller walked, not because the casino business deteriorated, but because one buyer’s option expired. Traders who understood the distinction between company value and deal-premium value held their nerve, or even added. Those who bought the June headline without a plan for withdrawal got the midweek session they deserved. Before any deal-driven position, ask yourself what the stock is worth with no deal at all. If the answer is uncomfortable, the position size should reflect that.