MGM Resorts announced on 28 October 2026 that it has amended its voting agreement with People Inc., the company led by Barry Diller and MGM's largest shareholder. The announcement came alongside MGM's third-quarter earnings call and follows People's withdrawal of a takeover bid worth more than $18 billion.
Under the amended terms, MGM will not take defensive measures or other actions adverse to People and its affiliates as long as they remain in compliance with the agreement, according to the company's statement as reported by Casino.org and Yogonet.
MGM Chairman Paul Salem said the agreement gives the board a path to maximize value through share repurchases and a change-of-control transaction, in line with the board's fiduciary duties. The company also said the agreement does not obligate either MGM or People to enter into any transaction. No transaction is currently being considered, MGM said.
Two further terms appear only in Casino.org's report. According to that outlet, the amended agreement caps the beneficial ownership of People and certain associated persons, referred to as the "Covered Entities", at 29.9% of MGM's outstanding shares. Casino.org also reports that Diller, People and the Covered Entities agreed, subject to certain conditions, to vote all their MGM shares in line with the board's recommendation on any change-of-control transaction.
On the earnings call, according to Yogonet, chief executive Bill Hornbuckle said People and a special committee of MGM had agreed on a price. He said People could not assemble a syndicate that met its objectives and withdrew its offer. Hornbuckle also said "We're done" on the talks, which he tied to unlocking the value of People's stake. He said that is also People's position.
The size of that stake differs between the two reports. Yogonet, reporting Hornbuckle's remarks, describes a stake of roughly 25%. Casino.org says People now holds more than 26% of MGM's equity. That outlet also reports that the original voting agreement was reached in April and that Diller first took a 12% stake in August 2020.
The exact date of the withdrawal is not established. Yogonet places it in September, while Casino.org says the bid was dropped about a month before the announcement, and neither gives a day. A withdrawal notice or a disclosure by People or MGM would settle the date. The full text of the amended agreement would confirm the 29.9% cap and the voting commitment, which currently rest on a single outlet.
Yogonet reports MGM's third-quarter revenue at $4.2 billion, down 1% year on year, and a net loss attributable to the company of $17 million, compared with $285 million a year earlier.
MGM shares closed at $27.26, down $0.73 or 2.6%, according to Yogonet, and Casino.org reports the stock is down 22.6% since the start of the year.
Prepared with AI from independent sources and published automatically, without prior editorial review. How we use AI