MGM Resorts Ends Takeover Talks After People Withdraws $18B+ Bid

MGM Resorts International has closed takeover discussions with its largest shareholder, People Inc., after the investment firm withdrew an offer exceeding $18 billion. No transaction is currently under consideration.

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Good to know

• MGM and People agreed on a price, but People could not assemble a syndicate that met its objectives.
• An amended voting agreement preserves flexibility for share buybacks or a future change of control.
• MGM reported third-quarter revenue of $4.2 billion and a $17 million net loss.

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MGM retains options despite the failed acquisition. Chairman Paul Salem said the revised agreement allows the company to repurchase shares or pursue a change-of-control transaction when appropriate and consistent with its fiduciary duties.

Under that arrangement, MGM will refrain from taking defensive measures against People and its affiliates, provided they meet the agreement requirements. Neither party has an obligation to pursue a deal.

Why the MGM Resorts Takeover Fell Through

Price was not the sticking point. President and CEO Bill Hornbuckle told the third-quarter earnings call on Wednesday that People and a special committee of MGM Resorts had reached an agreement on valuation.

However, People could not put together a syndicate that met its objectives. The investment firm, led by Barry Diller, withdrew its offer in September.

“The discussion between MGM and People ends there,” Hornbuckle said.

He explained that the discussions sought to unlock the value associated with the roughly 25% shareholding held by People. MGM subsequently amended the voting agreement to align its largest shareholder with its long-term strategy and shareholder returns.

With the talks over, MGM will continue executing its operating strategy.

MGM Looks to iGaming While Las Vegas Faces Travel Costs

Online casino legalization remains one potential source of growth. MGM continues to support legislation in Maryland and Virginia, although neither state approved iGaming during recent legislative sessions.

Hornbuckle said Virginia came close to approval. Meanwhile, MGM has held discussions with Maryland officials and plans to keep working toward legalization in both states. He sees each as a potentially substantial contributor to the business.

In Las Vegas, the immediate challenge involves the cost of getting visitors into town. Hornbuckle cited a 45% increase in airfares over the previous summer.

The loss of Spirit Airlines, changes to airline routes and pricing, and higher jet fuel costs have also affected the destination. Even so, Hornbuckle maintained his confidence in demand over the longer term.

“We remain optimistic about Las Vegas and its long-term future,” he said. “We always have and, frankly, we always will.”

Quarterly Loss Narrows Despite Lower Revenue

MGM reported $4.2 billion in revenue for the third quarter of 2026, down 1% year on year. However, its net loss attributable to the company narrowed to $17 million from $285 million a year earlier.

Beyond Las Vegas, Hornbuckle pointed to regional casinos, Macau and digital operations as reasons for confidence.

“We love the stability our regionals bring,” he said. “The activity case that the team has brought in Macau is second to none, literally, and it’s proving that.”

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