MGM Resorts International CEO Bill Hornbuckle has not ruled out the possibility of the casino operator acquiring People Inc., owned by Barry Diller—a notable reversal after the media company previously abandoned its own attempt to acquire MGM.
When asked this week at the Global Gaming Expo whether MGM is considering acquiring People Inc., Hornbuckle stated that MGM will continue to pursue “what is in the best interest of shareholders” and “work to unlock the value of a company we believe is significantly undervalued.”
Hornbuckle mentioned a range of assets held by MGM, including BetMGM, Macau casino operations, a resort under construction in Japan, and properties in Las Vegas.
Last week, The Wall Street Journal reported that MGM is considering making an offer to acquire People Inc. The publishing and holding company, formerly known as IAC, holds approximately 27% of MGM’s shares and is its largest shareholder.
Last week, People Inc. withdrew its proposal to acquire the remaining shares of MGM at $48.30 per share. Diller stated that the various factors required to complete the transaction had not come together as the company had hoped, but he also noted that People Inc. remains interested in potential strategic transactions with MGM.
Hornbuckle called Diller and People Inc. "excellent shareholders" and said Diller remains bullish on Las Vegas.
“There’s no place in the world like it,” Hornbuckle said, “especially in his world, where AI doesn’t mediate it. This is a unique place.”
Unlike some of People Inc.'s publishing and digital operations, Hornbuckle said Las Vegas is built on physical experiences that artificial intelligence cannot replace.
"People come here to experience something firsthand, and that won't change," he said.
Before the G2E discussion, MGM's stock traded around $32, significantly below People Inc.'s offer of $48.30 in June.
Caesars is preparing to go private.
MGM's negotiations with People Inc. come at a time when one of MGM's main competitors in Las Vegas is preparing to move forward with a privatization transaction.
Last week, Caesars Entertainment shareholders approved the sale of the company to Fertitta Entertainment for $17.6 billion, including the assumption of debt. The transaction will combine Caesars’ casino and digital businesses with Tilman Fertitta’s Golden Nugget casinos, Landry’s restaurant group, and other hospitality assets.
Caesars CEO Tom Reeg said that operating as a private company will enable management to take a longer-term perspective.
“As a publicly traded company, we’re forced to think in 90-day cycles, far more than any business health requires,” Reeg said. “That’s not how you run a business.”
He said that combining with a hotel company that has more than 400 locations nationwide would create opportunities to connect these services into a broader customer ecosystem.
This transaction is currently under an extended antitrust review by the U.S. Federal Trade Commission (FTC), which recently issued a second request for information.
Reeg said such requests are normal for transactions of this scale and noted that the markets under review are not particularly important to the combined company.
“If one or two assets are ultimately divested, you shouldn’t be surprised,” Reeg said, “but I don’t think they’ll be decisive from a news perspective.”
Reeg said that recent interest from Diller, Fertitta, and activist investor Carl Icahn in the casino industry indicates that savvy investors still see long-term value, despite concerns over weak foot traffic in Las Vegas and pricing issues.
“You’ll see some of the smartest people in the world saying, ‘How do I get in?’” Reeg said.
When asked if these investors bought because Las Vegas was cheap, he said, "I think it's both."
Wynn bets on the UAE
Outside of Las Vegas, Wynn Resorts CEO Craig Billings said that despite regional conflicts increasing the project’s budget by approximately $600 million, the company’s Wynn Al Marjan Island development in the UAE remains on schedule.
Billings said that about half of the increase was related to the conflict, but the resort only missed one day of construction.
He said that most disruptions occurred over a two- to three-month period when supply chains were rerouted to different ports, and shipping costs rose significantly due to insurers being unwilling to cover certain routes.
From our perspective, it’s very straightforward: open as soon as possible and start generating EBITDA,” Billings said. “You’ll recoup this cost increase very, very quickly.”
Billings stated that due to the security provided by UAE authorities, the property and construction insurance costs for the project have not increased. The resort is scheduled to open in September 2027.
This project will be the UAE’s first integrated resort with a casino, and Wynn’s largest expansion beyond its existing markets in Las Vegas, Boston, and Macau.
High-end clients in Macau
Billings also downplayed the significance of Macau's overall visitor data. Macau recorded a record number of visitors in August.
He said that Wynn’s performance depends less on how many people enter Macau and more on which types of customers come. The company targets the high-end market.
Billings stated that Macau is the world's largest gambling market, with gaming revenue approximately five times that of the Las Vegas Strip, while its hotel room count is about 30% of the latter's.
“Whether Macau grows by 2% or declines by 3%, you must look through any cycle,” he said. “We remain extremely, extremely focused on Macau’s medium- to long-term prospects.”
Hornbuckle said MGM is one of the smallest major operators in the market and also focuses heavily on high-value customers. He noted that 94% of MGM’s occupied rooms in Macau come from known casino customers, and the company is converting more standard rooms into suites to meet demand.
Billings also noted that, despite weak luxury retail sales in China, this does not necessarily serve as a warning sign for casino spending.
He said that Chinese consumers are shifting their brand preferences, weakening the historical link between luxury retail sales and gambling revenue.
MGM Japan Resort emerges from the ground.
Hornbuckle stated that MGM’s integrated resort in Osaka, Japan, on the artificial island of Yumeshima, remains on schedule and within budget after more than a year of site preparation.
The project spans approximately 97 acres with a total building area of 18 million square feet. Hornbuckle said its casino floor area will be four times that of MGM Bellagio.
“We’ve finally emerged from the dirt,” he said. “You can already see the structural framework. The steel structure is being installed.”
Hornbuckle stated that if Singapore’s integrated resorts serve as a reasonable benchmark, MGM Osaka could soon become a business generating $2 billion in annual cash flow.
Japan has currently approved only the Osaka project, but Hornbuckle said that even if competition emerges in Tokyo or its surrounding areas in the future, it would not pose a threat, as Japan’s population is large enough and it would take a long time for competitors to propose and complete new projects.
"I would be very surprised if we didn't have at least a five-year lead—even more," he said.