MGM Resorts International has ended takeover discussions with People Inc., its largest shareholder, after the investment firm withdrew an offer valued at more than $18 billion. President and CEO Bill Hornbuckle disclosed the decision during the operator's third-quarter earnings call on Wednesday.
People and a special committee of MGM had agreed on price, Hornbuckle said, but People was unable to assemble a syndicate meeting its objectives and pulled its bid in September. The two parties have amended their voting agreement. MGM will refrain from defensive measures against People and its affiliates provided they meet the agreement's terms. The revised arrangement preserves MGM's flexibility to repurchase shares or pursue a change-of-control transaction when appropriate, according to Chairman Paul Salem.
MGM reported third-quarter revenue of $4.2 billion, down 1% year on year, with net loss narrowing to $17 million from $285 million in the same period last year. Hornbuckle cited a 45% increase in Las Vegas airfares over the previous summer as a headwind, alongside the closure of Spirit Airlines and changes in carrier routing. The company remains optimistic about Las Vegas, its regional operations, Macau and digital business.
MGM continues to pursue iGaming legalisation in Maryland and Virginia, where both states failed to approve the measure in recent legislative sessions. MGM Resorts shares closed at $27.26 on the Nasdaq, down $0.73 or 2.6%.
