MGM China could add value for a possible outside buyer of MGM Resorts

The amended voting agreement between MGM Resorts International and Barry Diller's People Inc. could make it easier for the casino operator to be sold in the future. The agreement highlights MGM China in a change-of-control scenario. CreditSights said MGM China could carry event risk if the Las Vegas-based parent changes hands.

The research firm described the takeover risk as "less acute." Still, it said the revised agreement signals that MGM Resorts may be open to a sale in the future. The parent owns 56% of MGM China, which operates MGM Cotai and MGM Macau. The Macau unit could be an attractive element for a possible buyer.

CreditSights noted that MGM China's strong operating performance could also be a positive factor for potential buyers. According to the firm, 3Q26 results were good, market share increased, and leverage metrics remained well below pre-pandemic levels. MGM said it is not in transaction talks with Diller's media consortium. The company also did not say whether it is in talks with any other potential buyer.

Under the new agreement, People Inc. holds about 26% of the company and will pledge those shares in line with the board's recommendation on the change-of-control transaction. When Diller announced his $18 billion takeover offer, he had said he would oppose third-party bids. However, the new agreement has changed that position. Following the offer, unconfirmed reports also emerged that Diller wanted to sell his stake in MGM China and his stake in MGM Osaka. There is currently no transaction on the table.