MGM Resorts International has confirmed that takeover talks with its largest shareholder, Barry Diller’s People Inc, have ended, closing out months of speculation as the operator posted third-quarter 2026 results showing digital growth offset by continued uncertainty in Brazil. The announcement came during the company’s earnings call on 28 October, alongside figures showing group revenue of $4.2 billion and a narrowed net loss of $17 million.
What happened
President and Chief Executive Bill Hornbuckle used the Q3 call to put an end to months of market speculation about MGM Resorts‘ ownership structure.
MGM Resorts International ended takeover discussions with its largest shareholder, People Inc, after People was unable to assemble a syndicate that met its objectives and withdrew its offer.
That withdrawal had originally come in September, with
People, the investment firm led by media mogul Barry Diller, having withdrawn its offer of more than $18 billion in September.
Hornbuckle was direct about where things now stand.
He said the discussion between MGM and People ends there, adding that the dialogue between the two parties on a mutual buyout was all about trying to unlock the value of People’s roughly 25% stake.
As part of the resolution,
MGM Resorts also announced an amendment to its existing voting agreement with People, revising the arrangement following People’s decision to abandon its takeover bid.
In exchange, MGM agreed not to take defensive measures or actions designed to be adverse to People and Diller.
On the financial side,
MGM Resorts reported a 1% year-on-year decline in consolidated revenue to $4.2 billion in the third quarter of 2026, as weaker Las Vegas Strip results offset growth elsewhere, while net loss narrowed to $17 million from $285 million a year earlier and adjusted EBITDA fell to $403 million from $506 million.
Performance varied across operating segments: MGM China revenue increased 5% year-on-year to $1.1 billion, MGM Digital revenue rose 6% to $184 million, while regional operations reported an 8% decline in revenue to $883 million.
CFO Jonathan Halkyard said the company has more than $1 billion remaining in stock buy-back authority but did not repurchase any shares in Q3 amid the various acquisition talks.
Why it matters
The collapse of the People Inc talks removes a significant overhang for MGM shareholders, but the digital unit’s Brazil exposure is the more immediate operational concern for the wider industry.
BetMGM Brasil was the 36th-largest operator in Brazil, according to the Blask Index, before the market was curtailed last month by President Luiz Inácio Lula da Silva.
That shutdown followed a provisional measure, and the company’s own filings confirm the scale of disruption:
in September 2026, MGM Digital ceased operations in Brazil pending resolution to a government order temporarily banning fixed-odds betting and online casino games.
Despite the Brazilian disruption, management struck an optimistic tone on the wider digital business.
Hornbuckle said that MGM Digital will continue on its path to profitability regardless of the outcome in Brazil.
The numbers back that up:
for the entirety of MGM Digital’s operations, revenue grew 6% year-on-year from $174m to $184m, while it cut its segment adjusted EBITDAR loss to $4m from $23m.
Growth outside Brazil was broad-based, with
the BetMGM brand continuing to drive 8% top-line growth in the B2C channels, led by gains in Spain, the Netherlands, and the UK.
For operators and affiliates with exposure to Latin America, the episode reinforces how quickly a single political or regulatory shift can eliminate a market from the revenue mix. Chief Commercial Officer Gary Fritz acknowledged the surprise factor directly:
the election result caught the company by surprise, and it was able to reduce some of its fixed costs in Brazil accordingly.
Affiliates running Brazilian-facing campaigns for multi-market brands will need to watch for similar contingency moves elsewhere as operators rebalance budgets toward markets showing steadier growth, such as the UK and Spain.
The bigger picture
The North American joint venture remains the strongest part of MGM’s digital story.
BetMGM North America posted net revenue from operations of $710 million in the third quarter, up 7% year-over-year, while adjusted EBITDA surged 112% to $86 million.
The venture also
reiterated its full-year 2026 guidance of $2.9 billion to $3.1 billion in net revenue and $300 million to $350 million in adjusted EBITDA.
MGM’s Brazil setback echoes a broader pattern this year of sudden regulatory reversals in the market, a theme this site has tracked closely in recent coverage of operators responding to Brazil’s shifting betting rules, including Stake’s challenge to the court reversal of the betting ban. With MGM’s ownership question now settled and its US digital arm accelerating, attention turns to how the company and its Grupo Globo partner respond if and when Brazil’s market reopens.
Sources
- iGaming Business – MGM confirms all People Inc talks are dead as operator pares losses in Q3
- SBC News – MGM Digital to “continue on path to profitability” despite Brazilian challenges
- Gambling News – MGM Resorts Reports $4.2B in Revenue as Las Vegas Rates Pressure Earnings
- Yogonet – MGM ends takeover talks with largest shareholder People Inc. after $18B bid withdrawal
- Yogonet – MGM Resorts reports 1% revenue decline in Q3 as Las Vegas Strip results weaken
Leave a Reply