MGM Resorts Takeover Bid Collapses, Then Tables Turn

The MGM Resorts takeover bid from Barry Diller's People Inc. collapsed on September 23, 2026, sending MGM shares down more than 10%. A day later, the Wall Street Journal reported MGM may now consider buying People Inc. itself, according to Casino.org. The reversal comes as Caesars shareholders approved a separate $17.6 billion buyout by Fertitta Entertainment.

Why did the MGM Resorts takeover bid fall apart?

Barry Diller's People Inc. walked away from its MGM Resorts takeover bid late on September 23, 2026. Diller had offered $48.30 a share, valuing MGM above $18 billion, since June.

Diller said the pieces needed for a deal like this weren't coming together the way his team had hoped, according to Gambling Insider. He added that he still believes in MGM's future, despite dropping the offer.

MGM's board welcomed the outcome. Chairman Paul Salem said the company is excited to keep running MGM as a standalone business, Casino.org reports.

SBC News notes that People made its original $18 billion approach back in June, while already holding roughly 27% of MGM's outstanding shares. That stake made Diller's company MGM's single largest shareholder throughout the whole process.

How did MGM's stock react to the news?

MGM shares dropped more than 10% the next trading day on volume triple the usual average, according to Casino.org. The stock hit its lowest point since February.

Analysts see the drop as an opening rather than a warning sign. Jefferies analyst David Katz said MGM still holds a strong mix of gaming, digital and international assets, but needs to prove it can execute.

Texas Capital analyst David Bain compared MGM to the price Tilman Fertitta is paying for Caesars. Using that math, Bain estimated MGM could be worth around $53 a share, well above where it was trading, and that figure doesn't even include an extra $9 a share he attributes to the future MGM Osaka property.

Casino.org reports both analysts point to other potential catalysts too, including a possible sale of MGM Springfield and a clearer picture of what BetMGM, MGM's 50/50 online betting venture with Entain, is really worth. MGM Osaka itself is expected to open in autumn 2030, which both analysts see as a longer-term boost for the stock.

Could MGM now buy People Inc. instead?

Barely a day after Diller's exit, the Wall Street Journal reported MGM is weighing a bid for People Inc., according to Casino.org. People shares jumped over 9% on the news while MGM slipped slightly.

The logic is about MGM's own stock float. People owns roughly 27% of MGM, so buying the media company could let MGM retire a large chunk of its shares at what some analysts consider a favorable price.

People's holdings go well beyond MGM stock. The company owns more than 40 media brands, including Food & Wine, Investopedia and Travel + Leisure, plus non-core assets like The Daily Beast, a healthcare staffing firm, and a stake in the car-sharing service Turo valued between $1.1 billion and $1.3 billion in private markets, per Casino.org.

Diller has said he's open to a strategic deal with MGM, but nothing formal has been proposed. Casino.org describes the idea as still requiring a leap of faith, given that MGM's own market capitalization of $9.52 billion is only slightly larger than People's $2.68 billion valuation.

What's happening with Caesars at the same time?

On the same day Diller pulled out, Caesars Entertainment shareholders approved a separate $17.6 billion buyout by Tilman Fertitta's Fertitta Entertainment, Gambling Insider reports.

About 65.4% of Caesars' roughly 203.8 million outstanding shares backed the deal, which pays shareholders $31 per share in cash. Only about 4.3 million shares voted against it, with nearly 5.7 million abstaining.

The transaction, which includes roughly $11.9 billion in assumed debt, still needs regulatory sign-off before it closes. EGR reports Diller's remarks came alongside this Caesars news, adding to a busy week of casino ownership shakeups.

The Caesars deal gives analysts a benchmark for what a casino buyout can look like, and some are using it to argue MGM is undervalued at its current price.

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