MGM ends People Inc takeover talks as Q3 losses narrow and revenue dips

MGM Resorts International confirmed on 29 October 2026 that takeover discussions with its largest shareholder, Barry Diller's People Inc, have ended after People rescinded a proposal in September. The operator reported group revenue of $4.2 billion for the third quarter, a 1% year‑on‑year decline, and narrowed its net loss to $17 million from $285 million in the prior-year quarter.

Takeover talks conclusively over

People Inc submitted an offer on 1 June to buy the remaining 74% of MGM it did not already own at $48.30 per share, the company said. People rescinded that offer on 23 September. MGM chief executive officer Bill Hornbuckle told analysts the companies are no longer discussing any acquisition of one by the other.

"We're going to refocus on our business, the dialogue back and forth between us and People on you-buy-us, we-buy-you…we're done, and that's our position and that's People's position," Bill Hornbuckle said on the third-quarter call.

Prior to the call, MGM and People agreed an amended voting agreement under which People agreed not to exceed 29.9% ownership of MGM and to vote all its shares "in accordance with the Board's recommendation in connection with a change of control transaction," per MGM's release. MGM, in turn, agreed not to take "defensive measures or actions designed to be adverse" to People and Barry Diller.

Q3 financials: revenue, EBITDA and EPS

Group revenue for Q3 was $4.2 billion, down 1% year‑on‑year. Group adjusted EBITDA fell 20% to $403 million. The operator reduced its net loss from $285 million in the comparable quarter a year earlier to $17 million in Q3; losses per share narrowed from $1.05 to $0.07. MGM's stock fell 2.5% on Wednesday and closed at $27.27, having peaked above $50 in June during takeover speculation. Year‑to‑date the shares are down 25%, and they have lost 42% over the last five years.

Las Vegas performance

Las Vegas remains the principal focus for analysts. Las Vegas revenue declined 2% to $2.0 billion, while segment adjusted EBITDAR dropped 12% to $531 million. Hotel metrics were weaker: average daily rate and revenue per available room (revPAR) each fell 8%. Casino results showed strength in table games, with table games win up 17% to $363 million, while non‑gaming performance drove much of the segment decline.

Hornbuckle stressed the market still compares favourably with historical levels and said Las Vegas EBITDAR over the trailing 12 months is 70% higher than MGM's full‑year 2019 EBITDAR. An analyst on the call noted that revPAR has now declined in eight consecutive quarters. Hornbuckle attributed part of the weakness to reduced travel from Canada and broader international travel headwinds and said the company expects a stronger fourth quarter relative to the late summer.

MGM said it has prioritised capital projects at higher‑end Las Vegas properties including Bellagio and Cosmopolitan, and highlighted those projects in its Q3 investor presentation.

Regional and international segments

Regional revenue declined 8% to $883 million, with segment adjusted EBITDAR down 18% to $243 million. Overall casino revenue in the regional segment fell 10%, driven principally by an 11% drop in slot win. Chief operating officer Ayesha Molino described the casino underperformance as "material" for the quarter but said properties remain focused on operational efficiency.

The regional segment stands to benefit from the planned construction of a new 6,000‑seat Sphere entertainment venue next to MGM National Harbor in Maryland. On Tuesday the Prince George's County Council unanimously approved up to $215 million in public financing for the venue, which MGM expects will cost $1.4 billion and open in 2030.

Asia and development projects

MGM China set a quarterly revenue record of $1.1 billion, up 5% year‑on‑year, and finished the quarter with a market share of 17%, also a record, while segment adjusted EBITDAR fell 7% to $264 million. MGM China CEO Kenneth Feng pointed to calendar effects and changes in high‑end play as factors affecting margins and said the business is focused on efficiency.

In Japan, MGM's MGM Osaka integrated resort remains on schedule. Hornbuckle said the Osaka project is about 11% complete, is on time and on budget, and is targeted to open in 2030. In its investor presentation MGM compared Osaka to regional projects, noting that Osaka saw more visitors than Marina Bay Sands in 2025 and projecting 6,400 gaming machines — a total MGM said would be larger than Marina Bay Sands and MGM's two Macau properties combined.

Balance sheet and capital allocation

MGM ended the quarter with $2.3 billion in cash and total long‑term debt of $5.6 billion. Chief financial officer Jonathan Halkyard said the company has more than $1 billion remaining under its stock buy‑back authority but did not repurchase shares in Q3 while acquisition discussions were ongoing.

"I think over time, we're going to need relief on fuel, gas and airline pricing as well…but we see a better looking [fourth] quarter than I think we came out of the summer with," Bill Hornbuckle said.

Marcus Webb, Industry Deals Correspondent.