MGM Resorts closes talks after People withdraws > $18bn bid
People withdrew the bid in September; MGM amended its voting agreement to preserve options
Key Takeaways
- People Inc. withdrew in September a bid topping $18,000 million for MGM Resorts International.
- MGM amended its voting agreement to allow share repurchases or a future change-of-control transaction.
- MGM reported $4.2 billion revenue in Q3 2026 and a net loss attributable to the company of $17 million.
- People still holds about 25% of MGM’s shares; Barry Diller led People’s initiative.
MGM Resorts International closed talks over a takeover after its largest shareholder, People Inc., withdrew a bid topping $18 000 million in September. The company said on 29 October 2026 that there is currently no transaction under consideration and that the amended voting agreement allows share repurchases or a future change-of-control deal.
What happened to the bid
People Inc., led by Barry Diller, submitted and then withdrew a bid in excess of $18 000 million; the firm was unable to assemble a syndicate that met its objectives. Bill Hornbuckle, president and chief executive officer of MGM Resorts, said on the third-quarter earnings call that "The discussion between MGM and People ends there." Hornbuckle added that the talks aimed to unlock the value tied to the roughly 25% stake held by People.
MGM and People did agree a valuation, according to Hornbuckle, but People’s inability to form the investor group was the decisive factor. The company amended its voting agreement to align its largest shareholder with long-term strategy and shareholder returns.
Terms of the amended agreement and MGM’s options
The amended agreement preserves MGM’s flexibility to repurchase shares or pursue a change-of-control transaction when appropriate and consistent with its fiduciary duties, said chairman Paul Salem:
"The amended agreement allows the company to repurchase shares or pursue a change-of-control transaction when appropriate and consistent with its fiduciary duties," Paul Salem.
Under the amendment, MGM will refrain from taking defensive measures against People and its affiliates so long as they meet the agreement’s conditions. Neither party is obligated to proceed with a transaction.
Quarterly results and operational priorities
MGM reported revenue of $4.2 billion in the third quarter of 2026, a 1% year-on-year decline, and a net loss attributable to the company that narrowed to $17 million from $285 million a year earlier. Hornbuckle cited contributions from regional casinos, Macau and digital operations as reasons to remain confident.
"We love the stability our regionals bring," Hornbuckle said. "The activity case that the team has brought in Macau is second to none, literally, and it’s proving that."
iGaming opportunities and Las Vegas headwinds
MGM continues to support legalization of online casino gaming in Maryland and in Virginia; neither state approved iGaming in their most recent legislative sessions, though Hornbuckle said Virginia came close. MGM has held discussions with Maryland authorities and will keep working toward legalization in both states. Regarding Las Vegas visitation, Hornbuckle noted a 45% increase in airfares versus the prior summer, alongside the loss of Spirit Airlines, route and fare changes and higher fuel costs.
"We remain optimistic about Las Vegas and its long-term future," Hornbuckle said.
Frequently Asked Questions
Why did People’s bid for MGM Resorts fail?
People Inc. failed to assemble an investor syndicate that met its objectives; MGM and People had agreed valuation but People’s inability to form the group led to withdrawal in September.
What does the amended voting agreement allow MGM to do?
The amended agreement preserves MGM’s flexibility to repurchase shares or pursue a change-of-control transaction when appropriate and consistent with its fiduciary duties, and it prevents MGM taking defensive measures against People if the agreement’s conditions are met.
How did MGM perform in Q3 2026?
MGM reported $4.2 billion in revenue for Q3 2026, a 1% year-on-year decline, and a net loss attributable to the company of $17 million, improved from a $285 million loss a year earlier.
How large is People’s stake in MGM?
People Inc. owns approximately 25% of MGM Resorts’ shares, a position that the discussions sought to leverage.
What growth priorities did MGM outline after talks ended?
MGM said it will pursue growth through regional casinos, Macau and digital operations, and will continue supporting efforts to legalize online casino gaming in Maryland and Virginia.
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About the author
Gonzalo Marín
Industry Deals Correspondent
Gonzalo Marín covers the corporate deal flow of gambling — operator strategy, M&A, regulated-market entries, and product launches. The reports open with the transaction, cite companies, valuations, and jurisdictions exactly as released, and keep the announcement apart from its actual effect. When a Latin American operator raises capital or a European brand lands in the region, Gonzalo Marín reports who signs, for how much, and on what terms.
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