MGM Resorts ends takeover talks after People Inc. withdraws $18 billion bid

MGM Resorts International has concluded takeover discussions with its largest shareholder, People Inc., following the withdrawal of an acquisition proposal valued at over $18 billion. While the companies had reportedly reached an agreement on valuation, People Inc., led by Barry Diller, was unable to assemble a syndicate that met its objectives.

MGM has amended its existing voting agreement with People Inc. to align with its long-term strategy. Under the new terms, People Inc. and its affiliates must vote their shares in accordance with the board’s recommendations during a sale or change-of-control event, provided they meet specific requirements. The agreement also caps the group’s combined ownership of MGM at 29.9%.

In exchange, MGM has agreed to refrain from implementing defensive measures against People Inc. and its affiliates. Chairman Paul Salem stated that the revised pact provides the company with flexibility to pursue share repurchases or future change-of-control transactions as part of its fiduciary duties. Neither party is currently obligated to pursue a deal, and MGM remains focused on its existing operating strategy.