KEY TAKEAWAYS
- There will be no takeover deal involving MGM Resorts International and Barry Diller’s People Inc., MGM CEO Bill Hornbuckle confirmed on Oct. 28.
- After People Inc. pulled its bid to acquire MGM’s outstanding shares in September, a report suggested that the gaming giant could launch a surprise offer to acquire the media company instead.
- Under an amended voting agreement, People Inc. will not be able to take its shareholding in MGM Resorts above 29.9%.
Barry Diller’s People Inc. won’t be buying MGM Resorts International, and MGM Resorts International won’t be buying Barry Diller’s People Inc.
MGM Resorts President and CEO Bill Hornbuckle definitively cleared up the situation around the M&A discussions on the company’s third-quarter earnings call on Wednesday.
“We are done,” Hornbuckle told investors and analysts Wednesday. “That is our position and that is People’s position.”
Prior to the call, MGM announced an amendment to its voting agreement with People Inc. after the media company withdrew its takeover proposal valued at a total of approximately $18bn. Hornbuckle added that “the discussion between MGM and People ends there.”
Why did People Inc. pull its $18bn MGM takeover bid?
People Inc. submitted an offer on June 1, 2026, to buy all the shares of MGM Resorts that it does not already own. The company is already the casino giant’s largest shareholder, owning approximately 27% of all available public shares. Diller said in June that People Inc. expected to increase that holding to 50.1% of MGM Resorts in a deal that would have valued the BetMGM co-owner at more than $18bn.
However, People Inc.’s billionaire chairman said in September that the company withdrew its take-private proposal because “we didn’t feel the mix was coming together in the way we had hoped.”
Hornbuckle said on Wednesday’s call that although People Inc. and the MGM Resorts Special Committee came to terms on a price, “People was unable to assemble a syndicate that met their objective.”
Reports suggested MGM could actually buy People Inc. instead
Diller stated at that time of People Inc.’s withdrawal that he remained “open to and interested in” a potential future strategic transaction with MGM Resorts and suggested the parties would assess various alternative options.
The Wall Street Journal subsequently reported that MGM could consider purchasing People Inc. instead, noting that Diller’s company’s approximately 27% stake in MGM Resorts equates to almost the same value as People Inc.’s entire market capitalization.
At the Global Gaming Expo (G2E) at the Venetian Resort in Las Vegas on Sept. 29, CNBC correspondent Contessa Brewer asked Hornbuckle on stage whether that report was true.
“Look, we’re going to do as we’ve always wanted to do as investors and shareholders and try to unlock the value of a company that we think is grossly undervalued,” Hornbuckle responded at the conference. “… We’ll continue to talk both ways and see what it ends up.”
On Wednesday, he seemed to confirm that idea was considered, but said that it all ended up at no deal.
“The dialogue back and forth between us and People on ‘you buy us’, ‘we will buy you’, was all about trying to unlock the value our shares,” the MGM CEO added.
MGM voting amendment caps People Inc.’s maximum stake
The amended voting agreement announced on Wednesday, hours before MGM Resorts’ earnings call, added some more details.
People Inc. and Diller agreed that they will not purchase additional shares of MGM Resorts if that would take their ownership stake above 29.9% of MGM Resorts’ outstanding shares.
People Inc. and its leaders also committed to vote their entire shareholding in favour of board recommendations related to a future change-of-control transaction, while MGM Resorts agreed not to take “defensive measures or actions designed to be adverse to” People Inc.’s business.
Hornbuckle and MGM Resorts Board Chairman Paul Salem stressed that they greatly value and appreciate Diller as a shareholder and an director of the company.
“We believe this amended agreement aligns our largest shareholder, not only with our long-term strategic plan, but also with our ongoing commitment to maximizing value for all of our shareholders,” said the CEO on the call.
MGM Resorts EBITDA, share price slide
Hornbuckle spoke on Wednesday as MGM Resorts reported a 1% year-over-year decrease in net revenue to $4.2bn in Q3 2026.
Its adjusted EBITDA dropped 20.4% to $402.8m, with executives citing softer performances in Las Vegas and regional operations, which fell 1.5% and 7.7%, respectively, to approximately $2bn and $883.2m. Casino revenue from Las Vegas Strip Resorts increased 8% to $488m, but rooms revenue fell 6% to $622m.
However, the company’s net loss improved significantly, down to $17m from $285m a year ago, and operating income was $118.7m compared to the $112.9m loss reported in Q3 2025.
MGM Resorts’ share price dropped to $27.02 on Wednesday evening after the announcement, its lowest level since late March 2025.
