MGM Resorts Ends $18 Billion Take-Private Talks With People

By Grace Kim

The roughly $18 billion proposal to take MGM Resorts private at $48.30 a share in cash has collapsed, with People Inc. withdrawing in September after failing to assemble a financing syndicate. MGM Resorts CEO Bill Hornbuckle said on the earnings call that the parties “came to terms on price,” but that company account explains the negotiation, not why the funding never closed.

What does the amended voting agreement change?

MGM Resorts and People Inc., its largest shareholder, amended their voting agreement in a Wednesday filing. The new pact does three things:

• Voting: People Inc. and Barry Diller will vote their MGM shares with the board’s recommendation on any change-of-control transaction.
• Ownership: People will not raise its MGM stake above 29.9%.
• Restraint: MGM will not take defensive measures or other actions adverse to People or Diller.

Hornbuckle put People’s current holding at roughly 25%. The 29.9% ceiling therefore leaves 4.9 percentage points of headroom on his estimate, while providing no instruction to sell. The pact changes neither MGM’s public listing nor its operating arrangements, and it creates no buyer or closing.

Governance is settled; ownership remains unresolved.

Why did the $18 billion bid fail?

Talks began June 1, when People Inc., formerly IAC, offered $48.30 per share in cash for MGM. The proposal represented a 10.6% premium and a roughly $18 billion deal. People argued that public markets undervalued the business, though the source provides no market-sizing evidence to test that assertion.

Hornbuckle said both sides had reached agreement on price. People nevertheless could not organize the financing syndicate required for the cash offer and withdrew in September, according to him. The source identifies no lenders, commitments or syndicate terms, so the company’s price account cannot substitute for evidence that the money was available.

That distinction matters because an agreed headline price creates no cash payout when financing remains uncommitted. The proposal died at funding, not at the negotiating table.

Was MGM also considering a bid for People Inc.?

Asked about a Wall Street Journal report that MGM had considered bidding for People, Hornbuckle said the reciprocal discussions focused on unlocking the value of People’s roughly 25% MGM stake. He described both sides as done and said MGM would refocus on operations.

That is narrower than a negotiated merger or a live counteroffer. The source provides no MGM bid price, structure, financing plan or strategic rationale for buying People, and Hornbuckle’s operational focus came without a quantified revenue, cost or capital-spending plan. For MGM shareholders, the failed sequence removes the proposed $48.30 cash realization while leaving the company in public hands.

Reciprocal dealmaking is over, according to Hornbuckle; MGM’s next test is operating performance.

What changes for travel sellers?

For sellers of travel connected with MGM Resorts, the immediate revenue and distribution consequences are limited because the source announces no changes to commercial terms:

• Revenue: No operating forecast, demand projection or seller incentive is tied to the abandoned transaction.
• Distribution: No booking channel, commission structure, loyalty partnership or marketing commitment changes under the voting pact.
• Ownership: MGM stays publicly held rather than entering a take-private structure, while People’s roughly 25% block remains.

The 29.9% cap permits People to add 4.9 percentage points on Hornbuckle’s estimate, but it does not require a sale. Sellers therefore cannot assume either immediate block liquidation or a broader ownership-driven change in MGM’s travel distribution. Likewise, the $48.30 offer is a transaction reference, not evidence of stronger bookings, rates or seller economics.

Nothing in the filing or Hornbuckle’s account quantifies how the failed deal affects room demand, revenue, commissions or investment in distribution. Any forecast built on the proposed premium would go beyond the disclosed facts.

Going forward, the test is operational: Hornbuckle says MGM will refocus on operations, while the pact leaves People’s roughly 25% stake aligned with the board.