MGM Resorts International has confirmed it is continuing to review a potential $18bn all-cash takeover proposal submitted by People Incorporated, formerly known as IAC.
People Incorporated submitted its takeover proposal in early June, offering $48.30 for each MGM share it does not already own, with the company currently holding 26.1% of outstanding MGM common stock.
Speaking during a post-Q2 earnings call, president and CEO Bill Hornbuckle confirmed that MGM had formed a special committee of independent directors to review the offer.
Hornbuckle stressed that the committee members have no affiliation or association with People Incorporated, reinforcing the independence of the review process.
Despite the scrutiny surrounding the proposal, Hornbuckle declined to reveal MGM’s position on the bid, saying only that the review was ongoing and that a decision would be made in shareholders’ best interests.
“The committee continues to evaluate the proposed transaction in consultation with independent outside advisors,” Hornbuckle said. “I’m confident our board will pursue the course of action that’s in the best interest of the company and our shareholders.”
Against the backdrop of the possible takeover, MGM reported a 1% year-on-year rise in consolidated revenue to $4.5bn for the three months ending 30 June 2026.
MGM Digital was a standout performer, with revenue climbing 20% to $196m, although the segment’s adjusted EBITDAR loss widened from $26m to $31m during the quarter.
Las Vegas Strip Resorts remained MGM’s core revenue driver, with revenue edging up 3% to $2.2bn, supported by higher hotel occupancy, stronger room rates, and improved casino and entertainment performance.
Regional Operations revenue dipped 4% to $924m due to lower casino revenue, while MGM China revenue held level year-on-year at $1.1bn, though adjusted EBITDAR there fell 15% to $257m.
Net profit surged 173% year-on-year to $322.8m, with net profit attributable to MGM reaching $292.4m, representing a remarkable 497% increase compared to Q2 2025.
Adjusted EBITDA fell 6% to $610m despite the revenue growth, while operating profit climbed 24% to $503.6m and pre-tax profit jumped 209% to $413.5m following a 67% cut in non-operating expenses.
For the first half of the year, revenue climbed 3% to $8.91bn, with net profit attributable to MGM reaching $417.7m, some 111% ahead of the same period last year.
“MGM once again demonstrated the strength of our diversified portfolio with record Q2 consolidated revenue driven by a second consecutive quarter of year-over-year revenue growth for Las Vegas Strip Resorts, all-time best Regional Operations same-store quarterly revenue, and 20% year-over-year revenue growth at MGM Digital,” Hornbuckle said.
MGM also confirmed that its Osaka property in Japan remains on schedule for its planned 2030 opening, with Hornbuckle noting the project is hitting milestones on a “timely basis.”
“The underground work is progressing nicely with over 60% of foundation piles completed,” he said, adding that above-ground structural work including concrete placement and steel fabrication is actively underway.
“We remain on time and on budget as the only licensee in Japan for what we consider the greatest greenfield opportunity in the world,” Hornbuckle concluded.
