MGM China in focus as amended People Inc. deal leaves door open to MGM Resorts sale
CreditSights says MGM Resorts' amended voting agreement with Barry Diller's People Inc. implies openness to a future sale, putting MGM China in focus.
An amended voting agreement between MGM Resorts International and Barry Diller’s People Inc. could simplify a future sale of the casino operator while making MGM China a point of emphasis in a change-of-control scenario. Research firm CreditSights said the revised voting agreement with Diller implies MGM Resorts could be open to a future sale.
CreditSights also noted that MGM China faces potential event risk if control of its Las Vegas-based parent changes hands. MGM Resorts owns 56% of the operator of MGM Cotai and MGM Macau.
Under the new agreement, People Inc., which controls approximately 26% of the gaming company’s shares, will pledge those shares in accordance with the board’s recommendation in connection with a change-of-control transaction. After disclosing an $18-billion takeover bid for MGM Resorts, Diller made clear he would oppose third-party bids. That stance shifted under the revised voting agreement.
According to CreditSights, MGM’s chairman said the amended agreement creates “a clear path to maximize value through share repurchases and a change of control (CoC) transaction, if applicable.” CreditSights said this reads as MGM leaving the door open to another potential acquirer, a possibility that could resurface especially if MGM’s stock price remains depressed.
The firm also said it would not rule out MGM China’s continued strong operational performance, including decent 3Q26 results with a stronger market share and leverage metrics remaining well below pre-pandemic levels, as a positive draw for potential buyers of MGM.
MGM has made it clear it is not conducting talks regarding a transaction with Diller’s media consortium. The company has also not stated it is in discussions with another prospective buyer. No transaction is currently on the table.
Soon after Diller made his takeover overture for MGM, unconfirmed reports suggested he wanted to unload the company’s stake in MGM China as well as its interest in MGM Osaka.
Sources
- Casino.org News · Industry media · primary source ·
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