MGM ends acquisition discussions with People Inc. after offer withdrawal

MGM Resorts International and People Inc. have ended discussions over a possible acquisition of the casino operator by its largest shareholder, MGM president and chief executive Bill Hornbuckle said on the company's third-quarter earnings call. Hornbuckle said People Inc. and a special committee of MGM's board had agreed a price, but People Inc. withdrew its offer.

MGM also announced an amendment to its existing voting agreement with People Inc. The change bars People Inc. from buying more shares once its ownership reaches 29.9% and confirms that it will vote with the board on a change-of-control transaction, according to Hornbuckle.

Hornbuckle said the amended agreement aligns MGM's largest shareholder with its long-term strategic plan and with its commitment to maximising value for all shareholders. He later said the discussions, which he described as a "you-buy-us-we'll-buy-you" dialogue aimed at unlocking the value of 25% of MGM's shares, were over.

MGM reported revenue of $4.2bn for Q3 2026, a decrease of 1% year on year. Net loss attributable to MGM Resorts was $17m, compared with a net loss of $285m in the same quarter of 2025.

Hornbuckle said MGM remains optimistic about Las Vegas and its regional operations, and about digital. He said airfares were up 45% last summer and pointed to the loss of Spirit, how certain carriers now price the market and jet fuel among factors that had changed the market dynamic.

On igaming, Hornbuckle said Maryland and Virginia did not approve legalisation in recent legislative sessions but that MGM remains hopeful for both states. He said Virginia came close and that MGM has had dialogue with Maryland's government, adding that the company has lobbyists and will continue to be involved.

MGM Resorts stock closed at $27.26 on the Nasdaq, down $0.73, or 2.6%.