People Inc. reported a more than twofold increase in second-quarter profit, largely due to gains from its investment in MGM Resorts International. The company announced a quarterly profit of $506.9 million, or $6.68 a share, a significant jump from $211.5 million, or $2.57 a share, in the same period last year. This performance far exceeded analyst expectations of a loss.

The surge in profit was primarily driven by an unrealized gain on People Inc.'s MGM investment, which reached $721.7 million, compared to $307.4 million a year prior. People Inc., which also owns its publishing business and The Daily Beast, holds a stake in MGM valued at approximately $3 billion.

In June, People Inc. proposed acquiring MGM in a deal potentially worth around $12.4 billion. MGM has formed a special committee to review the offer and has entered into negotiations, though some within MGM reportedly believe the bid undervalues the company. MGM confirmed it is currently evaluating the acquisition proposal.