MGM Open to Buying People Inc. After Diller Firm's $48.30 Bid Died

MGM Resorts International CEO Bill Hornbuckle says the casino operator could buy Barry Diller's People Inc. — a striking reversal after the media company abandoned its own effort to take over MGM.

Asked at the Global Gaming Expo this week whether MGM was considering an offer for People Inc., Hornbuckle said MGM would keep pursuing what serves shareholders best and "trying to unlock the value of a company that we think is grossly undervalued."

He pointed to MGM's asset collection: the BetMGM joint venture, casino operations in Macao, a resort under construction in Japan and its Las Vegas properties. The Wall Street Journal reported last week that MGM was exploring an offer for People Inc. The publishing and holding company, formerly known as IAC, owns roughly 27% of MGM and is its largest shareholder.

People Inc. last week withdrew its $48.30-per-share proposal to buy the rest of MGM. Diller said the "mix" of factors needed to complete the transaction had not come together as hoped, but added that People Inc. remained interested in a possible strategic transaction with MGM.

Hornbuckle called Diller and People Inc. "an amazing shareholder" and said Diller remains bullish on Las Vegas.

"There's nothing like it replicated anywhere in the world," Hornbuckle said. "It is the one place, particularly in his world, where AI won't disintermediate it."

Unlike some of People Inc.'s publishing and digital businesses, Las Vegas is built around physical experiences that artificial intelligence cannot replace, Hornbuckle said.

"People are coming here to enjoy things physically, and that's not going to change," he said.

MGM shares traded near $32 ahead of the G2E discussion — well below the $48.30 People Inc. had offered in June.

Caesars prepares to go private

The MGM-People Inc. talks come as one of MGM's biggest Las Vegas rivals moves toward a take-private deal. Caesars Entertainment shareholders last week approved the company's $17.6 billion sale, including assumed debt, to Fertitta Entertainment. The transaction would combine Caesars' casino and digital operations with Tilman Fertitta's Golden Nugget casinos, the Landry's restaurant group and other hospitality assets.

Caesars CEO Tom Reeg said operating privately would let management take a longer view.

"We're forced as public companies to think in 90-day increments far more than is healthy for any business," Reeg said. "That's not how you run a business."

The combination with a hospitality company running more than 400 outlets nationwide creates an opportunity to connect the businesses into a broader customer ecosystem, he said.

The deal is undergoing an extended antitrust review by the Federal Trade Commission, which recently issued a second request for information. Reeg called the request normal for a transaction of this size and said the markets under scrutiny are not particularly material to the combined company.

"You shouldn't be surprised if there's a property or two that ultimately gets divested," Reeg said. "But I wouldn't expect them to be needle movers from a news perspective."

Reeg said the recent interest in casinos from Diller, Fertitta and activist investor Carl Icahn shows sophisticated investors see long-term value in Las Vegas despite weaker visitation and price concerns.

"You have some of the smartest people in the world saying, 'How do I get in?'" Reeg said. Asked whether those investors were buying because Las Vegas is a bargain, he answered: "I think it's both."

Wynn's UAE bet

Beyond Las Vegas, Wynn Resorts CEO Craig Billings said construction of Wynn Al Marjan Island in the United Arab Emirates remains on track despite regional conflict that has added roughly $600 million to the project's budget. About half of that increase relates to the conflict, and the resort has missed only one day of construction, he said.

Most of the disruption came during a two- to three-month stretch when supply chains were rerouted through different ports, Billings said. Shipping costs also surged because insurers refused to cover some routes.

"From our perspective, it's super straightforward: Get open, start earning EBITDA," Billings said. "You're going to pay for that uptick in cost very, very quickly."

Wynn's property and construction insurance costs at the site have not increased, he said, citing security provided by UAE authorities. The resort opens in September 2027. It will be the first integrated resort with casino gaming in the UAE and marks Wynn's biggest expansion beyond Las Vegas, Boston and Macao.

Macao's premium customer

Billings also played down broad visitation figures in Macao, which posted record visitor traffic in August. Wynn's results depend less on how many people enter Macao than on which customers arrive, he said, and the company targets the premium end.

Billings described Macao as the largest gaming market in the world, generating roughly five times the gaming revenue of the Las Vegas Strip with about 30% as many hotel rooms.

"Whether Macao's up 2%, down 3%, you have to look through any given cycle," he said. "We remain very, very focused on the mid- and long-term in Macao."

Hornbuckle said MGM is the smallest of the major operators in Macao and likewise chases higher-value customers. He said 94% of MGM's occupied rooms in Macao go to known casino customers, and the company is converting more standard rooms into suites to meet demand.

Luxury retail sales in China have been soft, but Billings said that is not necessarily a warning sign for casino spending. Chinese consumers are changing brand preferences, he said, weakening the historical link between luxury retail sales and gaming revenue.

MGM's Japan resort rises

Hornbuckle said MGM's integrated resort in Osaka, Japan, is on time and on budget after more than a year of site preparation on the man-made island of Yumeshima. The development covers roughly 97 acres and 18 million square feet, with a casino floor four times the size of the one at the Bellagio.

"We're finally coming out of the dirt," Hornbuckle said. "You can see the structures. Steel is being laid."

If Singapore's integrated resorts offer a reasonable comparison, MGM Osaka could quickly become a $2 billion cash-flow business, he said. Japan has approved only the Osaka development so far, but Hornbuckle said potential competition in or around Tokyo would not threaten the project, given Japan's population and the time a rival would need to propose and build a new resort.

"If we don't have a five-year head start on this — and then some — I'd be absolutely shocked," he said.