Arkhouse presses People Inc. to launch $750M buyback and consider NYC HQ sale

What the activist wants

Arkhouse Management wrote to Chairman Barry Diller on Wednesday arguing People's assets are worth far more than the share price implies. Arkhouse requested a Dutch auction of at least $750 million - a buyback structure in which management sets a price range rather than a single price - and urged People to evaluate a sale of the Manhattan headquarters, estimating proceeds near $300 million. The letter further suggested issuing contingent value rights, allowing shareholders to share in whatever payout might result from People's antitrust case against Alphabet Inc.

The valuation gap on Arkhouse's math

Arkhouse's math suggests People's equity might fetch between $72 and $86 per share, depending on how investors value its roughly 27% stake in MGM Resorts International. The stock ended Wednesday at $41.99 in New York, valuing the company at $3.1 billion. "We view the company's egregious undervaluation as a damning indictment of the current state of the public equity markets," Managing Partner Gavriel Kahane wrote. "Nevertheless, shareholders bear the consequences of that disconnect, and the board has the means and responsibility to act now." People's portfolio features titles such as Food & Wine and Entertainment Weekly.

Recent moves and deal chatter

People dropped plans in September to buy the remainder of MGM. MGM then explored a potential bid for People before last week CEO Bill Hornbuckle said that discussions about a transaction had ceased. Arkhouse argued that if MGM had bought People, shareholders would likely have realized significant value; absent an active deal, it is pressing the board to confront the discount head-on.

On Tuesday's third-quarter earnings call, People said it would resume share repurchases. Last week it cut 6% of its workforce, about 195 employees. Arkhouse also pointed out that People holds close to $1 billion in cash and carries zero borrowings at the parent level.

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What happens next

New York-based Arkhouse, whose mandate emphasizes strategic M&A and take-private transactions, said it is assessing additional paths, including a possible deal involving People, while withholding specifics. The size of Arkhouse's stake was not immediately known, and a People spokesperson did not promptly return a request for comment. In 2025, when People operated under the IAC banner, the company appointed Tor Braham - backed by Arkhouse - to its board after engaging with the investor. Last week, investor Arkhouse alongside Cobblers Cove Capital put forward a $39-per-share bid for Dine Brands Global Inc., the parent of Applebee's; the investors say the company rejected it in under 24 hours, and they urged management to reconsider.

The bottom line: If People executes a sizable buyback, explores a headquarters sale, and issues CVRs tied to the Alphabet case, your model likely shifts fast - from per-share math to sum-of-the-parts assumptions around MGM and any asset monetization.

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