MGM Ends Takeover Talks with People Inc Entirely

MGM Resorts announced that takeover talks between the company and People Inc, the firm of its largest shareholder Barry Diller, have ended.

People Inc had wanted to buy the remaining 74 percent stake on June 1 at $48.30 per share. The offer was withdrawn on September 23. MGM CEO Bill Hornbuckle said that neither side now has any intention of pursuing the deal.

Following the announcement, the parties signed an amended voting agreement. People Inc committed not to raise its stake in the company above 29.9 percent. In return, MGM agreed not to take defensive measures against People Inc or Diller.

MGM's third-quarter revenue came to $4.2 billion, down 1 percent year over year. Group adjusted EBITDA fell 20 percent to $403 million. The net loss narrowed from $285 million to $17 million, and the loss per share fell from $1.05 to $0.07.

The stock closed down 2.5 percent on Wednesday at $27.27. The shares had climbed above $50 in June on takeover rumors, but they have declined steadily since then. The stock is down 25 percent year to date.

Revenue in Las Vegas fell 2 percent to $2 billion. The region's EBITDA dropped 12 percent to $531 million. Room rates and RevPAR fell 8 percent. In contrast, gains from table games rose 17 percent to $363 million. Hornbuckle said he expects relief in fuel and airfare prices and hopes the fourth quarter will look better.