MGM Resorts changes voting agreement with People

MGM Resorts has changed its existing voting agreement with its largest shareholder, People. Under the new arrangement, People will not be able to acquire additional shares once its stake reaches 29.9%. The company also confirmed that People will vote alongside the board of directors on the transaction involving a change of control. The move follows the withdrawal in September of an $18 billion acquisition offer from the People group led by Barry Diller.

CEO Bill Hornbuckle said the agreement brings the largest shareholder in line with the company's long-term strategy. Hornbuckle said that falling room rates weighed on results in the third quarter. He added that a recovery was seen in October.

According to the company's third-quarter figures, total revenue fell 1% to $4.2 billion. Net loss attributable to the parent company was $17 million, compared with a loss of $285 million in the same period a year earlier. Las Vegas Strip revenue fell 2% to $2 billion. Regional operations revenue dropped 8% to $883 million, down from $957 million in the same quarter last year.

On the other hand, MGM China recorded a 5% revenue increase, and its digital businesses also showed strong growth. Chief Financial Officer Jonathan Halkyard said the new agreement will make share buybacks easier to carry out. The company also noted that it has repurchased roughly half of its share count over the past five years.