MGM Resorts International announced the establishment of a special committee to assess a significant takeover bid from People Inc. during its quarterly earnings call on Wednesday.
As MGM Resorts disclosed its Q2 2026 earnings, CEO Bill Hornbuckle opened the call by addressing the media reports regarding a proposed $18 billion acquisition from People Inc., led by its chairman, Barry Diller. "Before we review the second quarter results, I want to provide a brief update on the status of the offer," Hornbuckle stated. He confirmed that the board of directors has appointed a special committee made up of independent directors, all without ties to Diller, People Inc., or the proposal itself.
People Inc. currently holds a 26.1% stake in MGM Resorts and is pursuing the acquisition of the remaining shares at a price of $48.39 per share. This all-cash offer represents a premium of 24.1% over the average share price of MGM stock based on the previous 30 trading days ending May 29. "This committee continues to evaluate the proposed transaction and consult with independent outside advisors," Hornbuckle noted, expressing confidence that the board would choose the best course of action for the company and its shareholders.
The committee is also assessing a deal that would allow People Inc. to obtain just over 50.1% equity in MGM Resorts, with other investors possibly retaining minority stakes, which may include current shareholders.
During the Q&A segment of the earnings call, Hornbuckle and CFO Jonathan Halkyard were restricted from discussing the takeover details further. Diller described MGM as an “undervalued” entity and expressed intentions to secure a majority stake. “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,” Diller stated regarding the bid.
He further mentioned, “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.”
In its financial report, MGM Resorts declared $4.5 billion in revenue for Q2 2026, reflecting a 1% increase from the previous year. Most of the revenue was driven by its Las Vegas Strip Resorts, which also generated $2.2 billion, same as in Q2 2025. The company's net income for the quarter reached $292 million, significantly higher than the $49 million reported in Q2 2025, while adjusted EBITDA stood at $610 million, slightly down from $649 million in the previous year. MGM Resorts does not include BetMGM's revenue in its quarterly reports since BetMGM provides updates as a joint venture with Entain.
In the interactive segment, which includes LeoVegas and other online subsidiaries, MGM Digital reported revenues of $196 million for Q2 2026, compared to $164 million in the same quarter last year.
BetMGM also reported a positive financial performance, achieving $711 million in revenue during Q2 2026, marking a 3% rise from the year prior. Around 70% of BetMGM's annual revenue originates from online casino gaming, bringing in $483 million in Q2 2026. Meanwhile, online sports revenue mirrored last year’s results at $228 million. However, BetMGM's adjusted EBITDA fell from $86 million in Q2 2025 to $74 million in Q2 2026, and no retail revenue was generated during this quarter, a decline from $16 million in Q2 2025.
