MGM Resorts International CEO Bill Hornbuckle is keeping open the possibility that the casino operator could acquire Barry Diller’s People Inc. The prospect marks a striking reversal after the media company abandoned its own attempt to take over MGM.
Asked at the Global Gaming Expo whether MGM was considering buying People Inc., Hornbuckle said the company would keep pursuing the best interests of shareholders. He said MGM was “trying to unlock the value of a company that we think is grossly undervalued.”
Hornbuckle highlighted MGM’s collection of assets, including BetMGM, its casino operations in Macao, its Las Vegas properties and the resort it is building in Japan. The Wall Street Journal reported last week that MGM was exploring an offer for People Inc.
The publishing and holding company, formerly known as IAC, owns roughly 27% of MGM and is its largest shareholder. People Inc. last week withdrew its proposal to acquire the rest of MGM for $48.30 per share.
Diller said the “mix” of factors necessary to complete the transaction had not come together as the company hoped. People Inc., however, remained interested in a possible strategic transaction with MGM.
Hornbuckle called Diller and People Inc. “an amazing shareholder” and said Diller remains bullish on Las Vegas. “There’s nothing like it replicated anywhere in the world,” Hornbuckle said. “It is the one place, particularly in his world, where AI won’t disintermediate it.”
Unlike some publishing and digital operations owned by People Inc., Las Vegas depends on experiences that artificial intelligence cannot replace, Hornbuckle said. “People are coming here to enjoy things physically, and that’s not going to change,” he said.
MGM shares were trading near $32 ahead of the discussion, far below the $48.30 price People Inc. had offered in June. The talks are unfolding as Caesars Entertainment, one of MGM’s largest Las Vegas rivals, prepares for a take private transaction.
Caesars shareholders last week approved the company’s $17.6 billion sale, including assumed debt, to Fertitta Entertainment. The agreement would combine Caesars’ casino and digital operations with Tilman Fertitta’s Golden Nugget casinos, Landry’s restaurant group and other hospitality assets.
Caesars CEO Tom Reeg said private ownership would let management take a longer view. “We’re forced as public companies to think in 90-day increments far more than is healthy for any business,” Reeg said. “That’s not how you run a business.”
Reeg said combining with a hospitality company that operates more than 400 outlets nationwide creates an opportunity to connect the businesses within a broader customer ecosystem. The Federal Trade Commission is conducting an extended antitrust review and recently issued a second request for information.
Reeg described the request as normal for a transaction of that size and said the markets being examined are not particularly material to the combined company. He also said a property or two could ultimately be divested, though he did not expect such sales to be major news.
The recent casino interest from Diller, Fertitta and activist investor Carl Icahn shows sophisticated investors see long term value in Las Vegas, Reeg said. That interest persists despite weaker visitation and concerns about prices.
Beyond Las Vegas, Wynn Resorts CEO Craig Billings said construction of Wynn Al Marjan Island in the United Arab Emirates remains on schedule. Regional conflict has contributed to a roughly $600 million budget increase, with approximately half of that increase related to the conflict.
The project has missed only one day of construction. Most disruption occurred during a period of two to three months as supply chains were redirected through different ports, while shipping costs surged because insurers would not cover some routes.
“From our perspective, it’s super straightforward: Get open, start earning EBITDA,” Billings said. “You’re going to pay for that uptick in cost very, very quickly.” The resort is scheduled to open in September 2027.
In Macao, Billings said Wynn’s results depend more on which customers arrive than on total visitation. He described Macao as the world’s largest gaming market, producing roughly five times the gaming revenue of the Las Vegas Strip with about 30% as many hotel rooms.
“Whether Macao’s up 2%, down 3%, you have to look through any given cycle,” Billings said. “We remain very, very focused on the mid- and long-term in Macao.” Hornbuckle said 94% of MGM’s occupied Macao rooms are filled by known casino customers.
Hornbuckle also said MGM’s integrated resort in Osaka, Japan, remains on time and on budget. The development will cover roughly 97 acres and 18 million square feet, with a casino floor four times the size of the casino at MGM’s Bellagio.
Construction is advancing after more than a year of site preparation on Yumeshima, a man made island. Hornbuckle said MGM Osaka could quickly become a $2 billion cash flow business if Singapore’s integrated resorts offer a reasonable comparison.
Japan has approved only the Osaka development so far. Hornbuckle said potential competition in or around Tokyo would not pose a threat, citing Japan’s population and the time required for a rival project to be proposed and built.