MGM Resorts International published its earnings results for the third quarter of 2026 on Wednesday, just hours after it announced a notable agreement with its largest shareholder, Barry Diller-owned media conglomerate People Incorporated.
MGM saw both revenues and adjusted EBITDA across its system decrease in Q3, including declines in its Las Vegas segment, the earnings report detailed. The results came after MGM announced it had amended its existing Voting Agreement with People Inc., which, last month, withdrew its proposal to acquire the resort operator in a go-private deal that valued it at more than $18 billion. People Inc. initially proposed the transaction in June.
Where MGM Resorts, People Inc. stand
The amended agreement followed People Inc.’s abandonment of its bid to acquire MGM Resorts, after negotiations between the companies didn’t play out.
The companies have agreed that People Inc., Barry Diller and “certain associated persons” will vote with MGM’s board of directors in connection to a future change of control transaction, per the release.
People Inc. and associated parties have also agreed to not purchase additional shares of MGM Resorts if doing so would result in their aggregate ownership exceeding 29.9% of the company's outstanding shares, per the release. People Inc. holds 66.8 million MGM shares, representing approximately 27% of the company, according to a September filing with the U.S. Securities and Exchange Commission.
The new agreement “provides the [MGM Resorts] Board with a clear path to maximize value through share repurchases and a change of control transaction, if applicable, in accordance with the Board's fiduciary duties,” Paul Salem, chairman of the MGM Resorts board, said in a statement.
If the agreement is upheld, MGM Resorts will not take “defensive measures or actions designed to be adverse” to People Inc. and associated parties, the company said. MGM Resorts had considered its own bid to acquire People Inc. after the company withdrew its proposal, The Wall Street Journal reported in September.
On a Wednesday earnings call, MGM CEO Bill Hornbuckle said that the companies are “done” with “the dialogue back and forth on ‘You buy us, we’ll buy you’.”
With no change of control transaction being considered at this point, MGM “remains committed to executing its operational strategy and acting in the best interests of the Company and its shareholders,” per the release.
Third-quarter earnings show declines
As for the company’s third-quarter performance, MGM Resorts reported that its consolidated revenues decreased 1% year over year in Q3, while adjusted EBITDA decreased 20% year over year, per the earnings report.
In Las Vegas, the company’s revenues declined 2% year over year for the period, with segment adjusted EBITDAR down 12% year over year, the report detailed. MGM’s regional segment saw both revenue and adjusted EBITDAR declines as well.
RevPAR and ADR in Las Vegas were each down 8% year over year in the third quarter, while occupancy was flat, per the report.
While group and convention business remained a “bright spot” in Las Vegas, “the macro headwinds we faced during the third quarter affected our leisure and transient customers across the board,” Hornbuckle said on the call.
Rising fuel prices impacted traveler wallets in Q3, and “consequently, our [third-quarter] performance achieved flat occupancy but at lower room rates,” Hornbuckle said. However, despite those negative impacts, “October has rebounded favorably,” he noted in the report.
In Las Vegas, “October is starting off the fourth quarter on the right foot with solid group and convention activity and a busy citywide event calendar,” Hornbuckle said on the call, adding that Sin City “remains irreplaceable.”
“There is simply no other market in the world capable of matching its concentrated hospitality infrastructure and unparalleled ability to execute mega events on a global stage,” he said.
Meanwhile, the company’s digital portfolio and MGM Osaka in Japan remain “pivotal growth drivers,” CFO Jonathan Halkyard said in the report.
Halkyard added that the newly amended Voting Agreement “establishes a highly supportive framework that enables MGM Resorts to confidently pursue value-creating share repurchases as part of our ongoing commitment to enhancing shareholder value and driving longer-term growth.”
