MGM confirms end of talks with People Inc and narrows Q3 loss

MGM Resorts International confirmed that acquisition discussions between the company and its largest shareholder, People Inc., have ended and that neither party is considering buying the other. The clarification came at the third-quarter earnings call on Wednesday, alongside quarterly figures: group revenue of $4.2 billion, a 1% year-on-year decline, and a reduced net loss of $17 million versus $285 million a year earlier.

End of talks with People Inc.

People Inc., controlled by Barry Diller, filed an offer on 1 June to buy the 74% of MGM shares it does not own at $48.30 per share. MGM spent months evaluating the proposal; People withdrew the offer on 23 September. After reports suggesting the opposite possibility — MGM acquiring People — MGM chief executive Bill Hornbuckle said to analysts:

"We are going to refocus on our business, the back-and-forth dialogue between us and People about you-buy-us, we-buy-you... is over, and that is our position and People’s position." — Bill Hornbuckle, CEO of MGM Resorts International

Prior to the call, the two parties agreed to amend a voting agreement. People agreed not to exceed 29.9% ownership of MGM and to vote all of its shares "in accordance with the recommendation of the Board in connection with a change of control transaction," the company said. In return, MGM agreed "not to adopt defensive measures or actions designed to be adverse" to People and Barry Diller.

Third-quarter results

MGM reported group revenue of $4.2 billion, a 1% decline versus the prior-year period. Adjusted EBITDA for the group fell 20% year-on-year to $403 million. Loss per share narrowed from $1.05 in last year’s Q3 to $0.07 in the current quarter.

MGM shares fell 2.5% in Wednesday trading to close at $27.27. After takeover speculation pushed the price above $50 in June, the stock has steadily declined: down 25% year to date and 42% over five years.

Focus on Las Vegas

Analysts focused many questions on Las Vegas. Segment revenue for Las Vegas fell 2% to $2.0 billion, while adjusted EBITDAR for the segment dropped 12% to $531 million. The figures show a decline in non-gaming performance: average daily rate and revenue per available room (revPAR) each fell 8%. By contrast, casino revenue rose, driven by a 17% increase in table games win, which reached $363 million.

Hornbuckle emphasised that, on a historical basis, the market remains healthy; he said Las Vegas EBITDAR over the last 12 months is 70% higher than the company’s full-year 2019 figure. One analyst pointed out that revPAR has dropped for eight consecutive quarters. Hornbuckle attributed some of the pressure to international travel factors: "The Canada issue, the international travel issue, hasn’t helped. So we have to work through those things one by one," he said.

MGM is prioritising its high-end assets in the city, such as Bellagio and The Cosmopolitan, and in the investor presentation the company outlined capital projects for both properties. The lower end of the market has suffered several quarters under macroeconomic conditions. Hornbuckle added: "I think, over time, we will need relief in fuel prices, gas and airfares... but we see a better-looking fourth quarter and I think we get out of the summer."

Regionals and the new Sphere

Regional segment revenue was $883 million, an 8% year-on-year decline, and adjusted EBITDAR for the segment fell 18% to $243 million. On the gaming side, total casino revenue declined 10%, largely due to an 11% decrease in slot win.

Chief operating officer Ayesha Molino called the drop in casino performance "material," although she said individual properties are "very focused on running those businesses efficiently." The regional segment could benefit from construction of a new 6,000-seat Sphere in Maryland adjacent to MGM National Harbor. The Prince George's County Council unanimously approved up to $215 million in public funding for a venue estimated to cost $1.4 billion with an expected opening in 2030.

Balance sheet, buyback and Asia

At quarter end, MGM held $2.3 billion in cash against total long-term debt of $5.6 billion. Chief financial officer Jonathan Halkyard said the company has more than $1.0 billion of share buyback authority, but did not execute repurchases in Q3 amid the acquisition discussions.

MGM China posted a record quarterly revenue of $1.1 billion, up 5% year-on-year, and achieved a record market share of 17%. Nevertheless, adjusted EBITDAR for the segment fell 7% to $264 million.

Kenneth Feng, CEO of MGM China, told analysts: "There are many factors affecting our margins, such as event calendars and high-roller play, but we are very focused on our efficiency."

In Asia, MGM reiterated development of MGM Osaka, the sole holder of a casino licence in Japan for its project, with an expected opening in 2030. Hornbuckle said the project is approximately 11% complete, remains "on time and on budget" and called it the "largest integrated resort opportunity anywhere in the world." The investor presentation provides regional comparisons: according to MGM, Osaka attracted more visitors than Marina Bay Sands in Singapore in 2025, and the 6,400 gaming machines projected for Osaka exceed those at Marina Bay Sands and MGM’s two Macau properties combined.

"We are on time and on budget in Osaka," Bill Hornbuckle said of the Japan development.

The company note and senior management statements made clear the dual priority of resolving the shareholder uncertainty with People and proceeding with the operational and capital plans announced for Las Vegas, regionals and Asia.

Gonzalo Marín, Operations Correspondent.