Acquisition Claim at MGM Ends: Hornbuckle Explains

At the start of Wednesday's earnings call, MGM Resorts International Chairman and CEO Hornbuckle put an end to rumors about a possible acquisition by People Incorporated, the company's largest shareholder. Hornbuckle said People Inc. and the MGM Resorts special committee had agreed on a price, but the buyer side was unable to form the necessary consortium.

According to Hornbuckle, the acquisition will not go ahead. Management said it will now direct its focus to the company's long-term plans. This step means MGM will move away from takeover discussions and concentrate on its own strategy.

For shareholders and industry observers, this statement can be read as a sign that MGM will continue on an independent path. People Inc.'s position as the company's largest shareholder had long been a subject of debate in the market. The report includes no details on why the talks did not succeed, so we refrain from further commentary.