MGM Resorts Amends Diller Voting Deal, Eyes Open to Takeover
An amended voting agreement between MGM Resorts and Barry Diller's People Inc eases the path to a sale, with analysts at CreditSights flagging MGM China as a potential prize for any future buyer.
MGM Resorts International (NYSE: MGM) has amended its voting agreement with Barry Diller's People Inc (NASDAQ: PPLI) in a move that analysts say could make it easier for the Las Vegas-based casino operator to sell itself to a future suitor.
Research firm CreditSights, in a report covered by Casino.org News, said MGM China faces some "event risk" should control of its US parent change hands, even as it described the broader takeover overhang as "less acute" than it has previously been.
MGM Resorts owns 56% of MGM China, the Hong Kong-listed operator of MGM Cotai and MGM Macau. CreditSights said the Macau unit's performance could itself attract a future bidder for the parent company.
The firm pointed to MGM China's "decent 3Q26 results with a stronger market share and leverage metrics remaining well below pre-pandemic levels" as a possible draw for prospective buyers of MGM Resorts.
Under the revised agreement, People Inc, which controls roughly 26% of MGM Resorts shares, has pledged to vote those shares "in accordance with the Board's recommendation in connection with a change of control transaction."
That represents a shift from Diller's earlier position. After disclosing an $18 billion takeover bid for MGM Resorts, he had indicated he would oppose third-party offers, a stance CreditSights said has now changed under the new voting terms.
CreditSights cited MGM's chairman describing the amended arrangement as creating "a clear path to maximize value through share repurchases and a change of control (CoC) transaction, if applicable," which the firm said reads as MGM Resorts leaving the door open to another acquirer, particularly if its stock price stays depressed.
MGM Resorts has said it is not in talks with Diller's media consortium over a transaction in either direction, nor has it stated that it is discussing a deal with any other prospective buyer.
Where MGM China would sit in any change of control at the parent company remains unclear, though CreditSights suggested most would-be buyers of MGM Resorts would want to retain the Macau subsidiary.
Casino.org News noted that unconfirmed speculation had circulated after Diller's initial takeover approach suggesting he wanted MGM Resorts to offload its MGM China stake along with its interest in MGM Osaka. CreditSights said that if a sale of the parent does eventually materialise, it could ultimately bring more clarity, rather than only added uncertainty, for MGM China.