MGM Resorts Ends Takeover Talks After People Withdraws Offer Exceeding $18 Billion
People Inc. pulled its bid in September; MGM amends voting agreement to preserve options.
Key Takeaways
- People Inc. withdrew an offer exceeding $18 billion in September, ending takeover talks with MGM Resorts International.
- MGM and People agreed on valuation but People could not assemble a syndicate to complete the bid.
- MGM amended the voting agreement to allow share buybacks or a future change-of-control while refraining from defensive measures if conditions are met.
- MGM reported third-quarter 2026 revenue of $4.2 billion and a net loss attributable to the company of $17 million.
People Inc. withdrew an offer exceeding $18 billion for MGM Resorts International in September, and MGM has closed takeover discussions with its largest shareholder. No transaction is currently under consideration, and the parties said the valuation was agreed but People could not assemble a syndicate to meet its objectives.
Deal collapse and amended voting agreement
MGM Resorts International and People Inc. reached a valuation agreement during talks, President and CEO Bill Hornbuckle told investors on the company’s third-quarter earnings call on 29 October 2026. People, the investment firm led by Barry Diller, pulled its bid in September after failing to put together the required syndicate. MGM subsequently amended its voting agreement with People to preserve flexibility for share buybacks or a future change-of-control transaction.
Under the revised voting agreement, MGM will refrain from taking defensive measures against People and its affiliates provided they meet the agreement’s requirements. The company said neither party is obliged to pursue a transaction.
“The discussion between MGM and People ends there,” Bill Hornbuckle said on the earnings call, describing the objective as unlocking the value tied to People’s roughly 25% stake in MGM Resorts.
Paul Salem, MGM’s chairman, described the amended agreement as enabling the company to repurchase shares or pursue a change-of-control transaction when appropriate and consistent with fiduciary duties.
Financials and operational context
MGM reported third-quarter 2026 revenue of $4.2 billion, a 1% decline year on year, and a net loss attributable to the company of $17 million, narrowed from a $285 million loss a year earlier. Hornbuckle flagged regional casinos, Macau and digital operations as supporting the company’s outlook; he singled out the stability provided by regional properties and cited activity in Macau.
The company also reiterated interest in online casino growth in the United States. MGM continues to back iGaming legislation in Maryland and Virginia, though neither state approved online casino laws during recent sessions. Hornbuckle said Virginia came close to approval and that MGM has held discussions with Maryland officials.
Travel headwinds for Las Vegas
Hornbuckle identified visitor access as an immediate challenge for Las Vegas, citing a 45% increase in airfares over the previous summer. He pointed to the loss of Spirit Airlines, changes to airline routes and pricing, and higher jet fuel costs as factors affecting the destination. He added that MGM remains optimistic about Las Vegas’s long-term prospects.
“We remain optimistic about Las Vegas and its long-term future,” Hornbuckle said.
MGM emphasised that the failed acquisition leaves the company with options under the amended agreement while it continues executing its operating strategy.
Frequently Asked Questions
Why did takeover talks between MGM and People end?
Takeover talks ended because People Inc. withdrew its bid in September after failing to assemble a syndicate that met its objectives. MGM and People had reached agreement on valuation, but the investment firm led by Barry Diller could not put together the required financing group.
What does MGM’s amended voting agreement allow the company to do?
The amended voting agreement allows MGM to repurchase shares or pursue a change-of-control transaction when appropriate and consistent with fiduciary duties. It also requires MGM to refrain from defensive measures against People and its affiliates provided they meet the agreement’s requirements.
What were MGM’s Q3 2026 financial results?
MGM reported third-quarter 2026 revenue of $4.2 billion, down 1% year on year, and a net loss attributable to the company of $17 million, narrowed from a $285 million loss a year earlier.
Tags
About the author
Marcus Webb
Industry Deals Correspondent
Marcus Webb covers the deal flow of the gambling industry — operator strategy, M&A, market entries, and product launches from sportsbook rebrands to full platform migrations. The reports name the companies, valuations, and jurisdictions exactly as disclosed and separate the announcement from its market impact. When a group consolidates a brand or a challenger launches into a new state, Marcus Webb explains who gains, who pays, and what closes next quarter.
More from Marcus Webb
