MGM Abandons People Inc. Takeover, CEO Confirms

MGM’s on-off takeover of Barry Diller’s People Inc. is off, according to the gambling giant’s CEO. MGM is now “focusing” on its other commitments, least of all flat revenue at its Las Vegas properties.

Media firm People Inc. had been a frontrunner to purchase MGM Resorts in the summer, before attention switched to a reverse buyout.

People Inc. ultimately withdrew the deal during the summer. That sparked an astonishing report that MGM Resorts would instead buy out People Inc. However, that now seems dead in the water, according to the company’s latest conference call this week.

MGM Resorts to ‘Focus’ on Business

During an earnings call this week, MGM CEO Bill Hornbuckle said the deal to buy People Inc. was over following a “you buy us, we’ll buy you” dance between the two firms.

Hornbuckle added that the negotiations were all about “unlocking the value” of 25% of MGM shares. Ultimately, MGM said it had changed its voting agreement to restrict investors purchasing more than 29.9% of the gambling giant.

Hornbuckle said that MGM was “excited to get back to the way it was” as he reaffirmed his desire to “focus” more on their business.

MGM vs People Inc: A Marriage Not Made in Heaven

• June 1: People Inc. proposes all-cash purchase of MGM Resorts. Valuation is set at $18 million at $48.30 per share.
• 23: People Inc. pulls out of the deal after failing to “assemble a syndicate” of investors.
• 30: MGM says it is exploring its own bid for People Inc.
• 28: “We’re done,” declares MGM CEO, Bill Hornbuckle. MGM agrees not to target People and their affiliates provided they play ball.

MGM Resorts Revenue Drops 1%

Some of the “business” MGM will need to focus on includes a reported drop in revenue for Q3 2026.

Regional operations were up slightly by 1%. However, the company reported group revenue was $4.2 billion, a decrease by the same amount year-over-year. Diluted loss per share (EPS) was $0.07 for the period ending Sept. 30.

Las Vegas Bears the Brunt

The future of MGM’s Las Vegas properties dominated the earnings call this week.

MGM reported a 2% drop in revenue for the quarter to $2 billion. MGM controls 12 Vegas resorts, including the MGM Grand, Mandalay Bay, and Bellagio.

However, table games drop and slot handle were both up across all Las Vegas Strip Resorts. An 89% occupancy rate is spooking investors, however. That was flat year-over-year and was tied to an 8% drop in average daily rate and revenue per room.

High fuel costs due to the ongoing war in Iran are leading to higher airfares. This is having a knock-on effect with fewer visitors to Las Vegas overall.

BetMGM Continues New Feature Rollout

There was stronger news for BetMGM in Q3 2026. Net revenue was $710 million, a year-over-year increase of 7%. That included combined iGaming net revenue across online casino and sports betting.

According to the latest investor report at BetMGM, the company predicts total net revenue for the year to be between $2.9 and $3.1 billion.

BetMGM continues to roll out new products.

Timing with the start of football season, BetMGM Sportsbook introduced new weekly promotions and what it calls “legendary experiences”.

The sportsbook also brought in improved functionality, including faster page loads, better site navigation, and real-time odds flashes for football.