MGM Resorts International’s chief executive suggested the casino operator could turn the tables and acquire its largest shareholder, People Inc.
- MGM CEO Bill Hornbuckle left open the possibility of buying Barry Diller’s People Inc. after the holding company dropped its $48.30-per-share buyout offer for MGM.
- Rival operator Caesars Entertainment is preparing to go private after shareholders approved a $17.6 billion acquisition by Fertitta Entertainment.
- Major gaming operators are advancing international developments.
MGM Resorts International’s Chief Executive Bill Hornbuckle has opened the door to a potential takeover of media and holding company People Inc., marking an unexpected turn in corporate dealmaking after Barry Diller’s firm scrapped its own attempt to acquire the casino giant.
Asked at the Global Gaming Expo this week whether MGM was considering buying People Inc., Hornbuckle said MGM would continue pursuing what is in the best interest of shareholders and “trying to unlock the value of a company that we think is grossly undervalued,” according to a CNBC report.
People Inc., formerly known as IAC, is MGM’s largest shareholder, with approximately a 27% stake. Last week, People Inc. withdrew its $48.30-per-share proposal to acquire MGM’s remaining equity, citing transaction mechanics that failed to align as anticipated. However, Diller said the company remains interested in potential strategic transactions between the two entities.
Hornbuckle praised Diller’s continued bullishness on Las Vegas, noting that physical, experience-driven destination resorts remain uniquely protected from technological disruption amid heightened dealmaking in the casino industry.
Caesars Prepares $17.6B Take-Private Deal
The strategic maneuvering between MGM and People Inc. comes as competitive pressures and private equity interest reshape the gaming sector. Shareholders of rival operator Caesars Entertainment recently approved a $17.6 billion sale, including debt, to Fertitta Entertainment.
The deal will merge Caesars’ casino operations with Tilman Fertitta’s Golden Nugget venues, Landry’s restaurant empire, and broader hospitality portfolio. Caesars CEO Tom Reeg said operating outside the scrutiny of public markets would let leadership focus on long-term strategy rather than 90-day earnings cycles.
The Federal Trade Commission is currently reviewing the transaction for antitrust concerns. While the FTC issued a second request for information, Reeg characterized the regulatory process as routine for a transaction of this scale and signaled that any potential property divestitures would be immaterial.
UAE And Japan Developments Advance
Beyond domestic consolidation, gaming leaders detailed progress on high-profile international expansions.
Wynn Resorts CEO Craig Billings confirmed that construction of Wynn Al Marjan Island in the United Arab Emirates remains on schedule for a September 2027 opening.
Concurrently, MGM is making headway on its multi-billion-dollar resort in Osaka, Japan. After extensive site preparation on the artificial island of Yumeshima, Hornbuckle confirmed the 97-acre project is on schedule and on budget, featuring a casino floor four times the size of its Bellagio property.
MGM Stock: Retail View
Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘high’ message volumes.
MGM stock has lost about 15% year-to-date.
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