MGM Resorts International and People Inc., under the leadership of Barry Diller, will not be pursuing a takeover deal. Bill Hornbuckle, the CEO of MGM Resorts, made this clear during the company's third-quarter earnings call on October 28. He stated, "We are done. That is our position and that is People’s position."
People Inc. recently pulled its bid to acquire MGM’s remaining shares, which would have valued the company at around $18 billion. Following this development, rumors surfaced suggesting that MGM might make a surprise offer to acquire People Inc. instead.
As part of an updated voting agreement, People Inc. cannot increase its share in MGM Resorts beyond 29.9%. Having submitted an offer on June 1, 2026, People Inc. already holds roughly 27% of MGM’s public shares. Diller, at that time, had noted that the intention was to raise this stake to 50.1%.
However, Diller explained in September that the takeover proposal was withdrawn because the anticipated alignment between the two companies "didn’t feel like it was coming together in the way we had hoped." Hornbuckle elaborated that although a price had been discussed, People Inc. struggled to form the necessary syndicate to pursue the deal.
Following its withdrawal, Diller expressed that he remained open to future strategic transactions with MGM Resorts. This led to speculation that MGM might consider acquiring People Inc. instead. The Wall Street Journal highlighted that People Inc.’s 27% stake in MGM holds an almost equivalent value to its total market capitalization.
At the Global Gaming Expo held on September 29, CNBC correspondent Contessa Brewer directly questioned Hornbuckle about these reports. His response was non-committal, emphasizing MGM's intent to enhance the company's perceived value. “We’ll continue to talk both ways and see what it ends up,” Hornbuckle said.
On Wednesday, he confirmed the dialogue about mutual acquisition attempts had concluded with no resultant deal.
The revised voting agreement released on the same day clarified that People Inc. would not acquire additional shares that would exceed its capped ownership in MGM. Additionally, it outlined that People Inc. would vote its shares in favor of board recommendations for a future change of control transaction, with the commitment from MGM not to enact any defensive measures against People Inc.
Hornbuckle and MGM Board Chairman Paul Salem expressed their appreciation for Diller's role both as a shareholder and director, reinforcing the amended agreement’s alignment with MGM Resorts' long-term strategy and commitment to shareholder value.
In the same earnings call, MGM Resorts reported a 1% decline in net revenue year-over-year, totaling $4.2 billion for Q3 2026. The company also saw a 20.4% drop in adjusted EBITDA, down to $402.8 million, amid weaker performances in both Las Vegas and regional markets. Casino revenue from the Las Vegas Strip did increase, but room revenue saw a decline.
Despite these financial setbacks, MGM's net loss improved significantly to $17 million from $285 million in the previous year, while operating income climbed to $118.7 million from a $112.9 million loss reported the year prior. Following the announcements, MGM Resorts’ share price fell to $27.02, marking its lowest point since March 2025.
