MGM CEO Signals Possible Acquisition Of Top Shareholder People Inc. As Casino M&A Accelerates: Report

MGM Resorts CEO Bill Hornbuckle expressed openness to acquiring People Inc., which had previously attempted to take MGM private. People Inc. holds 27% of MGM and withdrew its offer last week. MGM stock was down 3%, while People Inc. stock rose 9% on acquisition rumors. Neither company confirmed the reports.

People Incorporated, led by Barry Diller, has withdrawn its offer to acquire MGM Resorts International. Diller cited challenges in reaching an agreement, despite holding 27% of MGM's shares. MGM's stock dropped from $38 to $32 following the news. According to CNBC, MGM's $30 billion debt load was a factor. The Wall Street Journal reported MGM may now consider acquiring People Incorporated.

MGM Resorts (MGM) is considering an offer for its major shareholder, People Inc. (PPLI), after People withdrew its $48.30 per share offer for MGM. People's stock rose 11% to $40 following the news. People owns 27% of MGM, and a deal could allow MGM to repurchase its own shares at a discount.

U.S. equity indexes rose, with the Dow up 0.9% to 51,828. Oil prices fell on Iran's proposed war-ending plan. Treasury yields varied, with the 30-year yield reaching a 52-week high. Akamai (AKAM) gained 3.2% after a $11.6B AI deal with Anthropic. MGM (MGM) dropped 3.3% amid potential acquisition talks with People (PPLI).

MGM Resorts may bid for People Inc after Barry Diller's company rescinded its $18B offer to acquire MGM. People's shares rose 10%, while MGM's fell 15%. Analysts remain bullish on MGM, citing a discount in its enterprise value and maintaining a 'Buy' rating with a $55 price target.

People Incorporated (PPLI) shares rose 10% to $39.74 after a WSJ report that MGM Resorts (MGM) may consider a takeover bid. MGM shares fell 3% to $32.72. People had previously proposed to acquire MGM's remaining shares for $48.30 per share but withdrew the offer. People owns about 27% of MGM, making it the largest shareholder.