MGM Resorts International announced during its quarterly earnings call the formation of a special committee to review a blockbuster takeover bid from People Inc.
On Wednesday, MGM Resorts released its Q2 2026 earnings results, accompanied by an earnings call with shareholders. MGM Resorts CEO Bill Hornbuckle immediately addressed reports of a potential $18bn takeover bid by People Inc. and chair Barry Diller during the earnings call and provided insights into the company’s course of action.
“Before we review the second quarter results, I want to provide a brief update on the status of the offer,” said Hornbuckle during the Q2 earnings call. “Our board of directors has formed a special committee composed of independent directors with no affiliation or association with Barry Diller, People Incorporated, or the proposed transaction.”
People Inc. offer for MGM Resorts purchase
People Inc. is exploring a potential takeover of MGM Resorts as an existing shareholder that holds a roughly 26.1% stake in the Las Vegas-based gaming and entertainment giant. Last month, the company disclosed that it submitted a non-binding proposal to acquire all remaining shares of MGM Resorts that it does not already own for $48.39 per share.
The all-cash proposal represents a 24.1% premium to the volume-weighted average price of MGM common stock for the 30 trading days ending on May 29.
“This committee continues to evaluate the proposed transaction and consult with independent outside advisors,” continued Hornbuckle. “I’m confident our board will pursue the course of action that’s in the best interest of the company and our shareholders.”
The committee and independent advisors are evaluating a deal that also aims to have People Inc. own just over 50.1% of equity in MGM Resorts, with other investors holding minority interests. The other investors could include existing shareholders of MGM Resorts.
MGM CEO limited in comments
Hornbuckle also went on to tell listeners that he, along with MGM Resorts Chief Financial Officer Jonathan Halkyard, was unable to answer any questions related to the proposed transaction by People Inc and Diller during the Q&A portion of the earnings call.
Diller is aiming to own a majority stake in a company he considers “undervalued.”
“We [People Inc.] began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real-world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities,” said Diller in a statement announcing People Inc. submitting a bid for MGM Resorts.
“We continue to believe the market materially undervalues the power and durability of MGM’s assets. We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”
MGM Resorts reports lukewarm Q2 results
MGM Resorts is weighing a sale after reporting $4.5bn in revenue in Q2 2026. The results were a 1% increase compared to the same period last year. The company’s Las Vegas Strip Resorts led the results, generating $2.2 bn in Q2 2026, mirroring results in Q2 2025.
Net income for MGM Resorts reached $292m during the quarter, up from $49m in Q2 2025. Meanwhile, adjusted EBITDA closed at $610m in Q2 2026, down from $649m in Q2 2025.
MGM Resorts does not include BetMGM revenue in its quarterly earnings reports as BetMGM provides business updates as a joint venture between MGM Resorts and Entain.
MGM Resorts’ Interactive segment includes LeoVegas and other online subsidiaries. In Q2 2026, MGM Digital posted $196m in revenue, up from $164m for the same period in 2025.
BetMGM posted slight revenue growth
MGM Resorts’ venture BetMGM reported favorable financial results in Q2 2026, with the gaming brand generating $711m in revenue during the quarter. The results were a 3% increase year-over-year. BetMGM disclosed that roughly 70% of its annual revenue comes from online casino gaming, with the vertical generating $483m in revenue in Q2 2026.
Online sports revenue for BetMGM was $228m, mirroring results in Q2 2025. BetMGM’s adjusted EBITDA declined year-over-year from $86m in Q2 2025 to $74m in Q2 2026.
BetMGM did not generate retail revenue during Q2 2026. It reported $16m in Q2 2025.
