MGM Resorts has ended discussions about either buying People Inc. or being acquired by its largest shareholder. Chief executive Bill Hornbuckle drew a line under the talks during the casino group's third-quarter earnings call on October 28.
Hornbuckle said the two sides were finished with the back-and-forth process, according to SBC Americas. People had withdrawn its earlier proposal to buy the MGM shares it did not already own, while later reports suggested MGM might consider a bid for the media company.
The companies have instead amended their voting agreement. MGM's announcement says People, Barry Diller and associated parties cannot buy shares that would take their combined MGM ownership above 29.9%.
The SEC-filed release also says the covered parties will, subject to conditions, vote in accordance with MGM's board recommendation on a future change-of-control transaction. The document does not commit either company to another deal and says none is currently contemplated.
The arrangement leaves People as MGM's largest shareholder while removing the immediate prospect of a transaction between the two groups. MGM said it remains focused on its operating strategy and shareholder value.
