MGM Resorts International has ended takeover discussions with its largest shareholder, People Inc., after the latter withdrew its bid for a proposed acquisition, President and CEO Bill Hornbuckle said during the operator’s third-quarter earnings call on Wednesday.
Hornbuckle said People and a special committee of MGM Resorts had agreed on a price, but People was unable to assemble a syndicate that met its objectives and withdrew its offer.
MGM Resorts also announced an amendment to its existing voting agreement with People. It revised the agreement following People’s decision to abandon its takeover bid. People, the investment firm led by media mogul Barry Diller, withdrew its offer of more than $18 billion in September.
MGM will refrain from implementing defensive measures against People and its affiliates, provided they meet the agreement’s requirements. MGM Chairman Paul Salem said the arrangement preserves the company’s flexibility to buy back shares or pursue a change-of-control transaction when appropriate and consistent with its fiduciary duties.
The company clarified that neither side is obligated to proceed with a deal and that no transaction is currently being considered. MGM said it would continue to focus on its operating strategy and shareholder interests.
Hornbuckle said the amended agreement aligns MGM Resorts’ largest shareholder with the company’s long-term strategy and its commitment to maximising shareholder value.
“The discussion between MGM and People ends there,” he said. “The dialog between us and People on you-buy-us-we’ll-buy-you was all about trying to unlock the value of that 25% of our shares. We’re done, and that’s our position. That’s People’s position.”
MGM Resorts reported revenue of $4.2 billion in the third quarter of 2026, down 1% year on year. Its net loss attributable to the company narrowed to $17 million from $285 million in the same period last year.
Despite the revenue decline, Hornbuckle expressed optimism about the outlook for Las Vegas, the company’s regional operations, Macau, and its digital business. “We remain optimistic about Las Vegas and its long-term future,” Hornbuckle said. “We always have and, frankly, we always will.”
“We love the stability our regionals bring,” he added. “The activity case that the team has brought in Macau is second to none, literally, and it’s proving that.”
He said higher airfares had affected the Las Vegas market, citing a 45% increase in airfares over the previous summer. The loss of Spirit Airlines, changes in how certain carriers serve and price routes to the market, and higher jet fuel costs have also altered market dynamics.
“We’ve had this whole narrative around value, and we still believe Las Vegas is an amazing value,” Hornbuckle said. “That’s something we continue to talk about and push our way through, if you will.”
MGM Resorts also remains hopeful that Maryland and Virginia will legalise iGaming, despite both states failing to approve the measure during recent legislative sessions.
Hornbuckle said Virginia came close to approval, while the company has held discussions with Maryland officials. He added that MGM Resorts would continue working towards legalisation in both states, which he described as potentially significant contributors to the company’s business.
MGM Resorts shares closed at $27.26 on the Nasdaq, down $0.73, or 2.6%.
