Voting Agreement at MGM Resorts Could Open the Way to a Sale

The revised 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. According to analysis firm CreditSights, this development places MGM China, its Macau subsidiary, at the center of a possible change of control transaction.

CreditSights noted that MGM China expanded its business in July by acquiring a hotel management operation focused on mainland China from the parent group. The research firm had warned that MGM China could face event risk if the ownership structure of the Las Vegas-based parent changed. However, the firm said takeover pressure is no longer as strong as before, following the changes to the agreement between MGM Resorts and People Inc.

MGM Resorts owns 56 percent of MGM China. MGM China operates the MGM Cotai and MGM Macau properties. People Inc. controls about 26 percent of MGM's shares. CreditSights said MGM China gained a stronger market share in the third quarter of 2026 and that its leverage ratios remain well below pre-pandemic levels, which could be an attractive factor for potential buyers.

MGM Resorts had previously said it was not in talks with Diller's media consortium about a transaction. The company also has not announced talks with any other possible buyer. Under the new arrangement, People Inc. will vote its shares in a change of control transaction in line with the recommendation of MGM's board of directors. This is a step back from Diller's earlier position, in which he said he would oppose rival third-party bids after his $18 billion takeover offer. The new arrangement could give the board more flexibility if it contacts another buyer.