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MGM’s CEO left the door open this week to a surprising turn in the industry: the casino giant may consider buying back stock held by Barry Diller’s People Inc., after the media company abandoned its own bid to acquire MGM. The comments, made at the Global Gaming Expo, come as several major players jockey for positions across Las Vegas, Macao, the UAE and Japan.
MGM signals openness to deal with People Inc.
At the industry conference, MGM Resorts International chief executive Bill Hornbuckle said the company will act in shareholders’ best interests and look for ways to “unlock the value of a company that we think is grossly undervalued.” He did not announce an offer, but kept acquisition as a possibility.
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People Inc., formerly IAC, is MGM’s largest shareholder with roughly 27% of outstanding stock. The publisher withdrew a $48.30-per-share proposal in June, saying the conditions to complete a takeover had not materialized, though it signaled continued interest in strategic options involving MGM.
Hornbuckle highlighted the range of MGM assets that could factor into any transaction: its sports-betting arm BetMGM, casino operations in Macao, the under-construction Osaka resort in Japan and its Las Vegas properties. He also praised Barry Diller and People Inc. as “an amazing shareholder” and noted Diller’s continued enthusiasm for Las Vegas.
MGM shares were trading near $32 ahead of the G2E discussion, well below People Inc.’s earlier offer.
Why Las Vegas still matters, according to MGM
Hornbuckle argued that Las Vegas delivers physical experiences that technology cannot replace. “People are coming here to enjoy things physically, and that’s not going to change,” he said, suggesting artificial intelligence is unlikely to displace in-person resort and casino visits.
The comment framed Vegas as a durable asset class, even as investors debate valuations and strategic moves.
Caesars moves toward going private
Meanwhile, Caesars Entertainment is on a different path. Shareholders approved a roughly $17.6 billion sale, including assumed debt, to Fertitta Entertainment, a deal that would merge Caesars with Tilman Fertitta’s Golden Nugget casinos, Landry’s restaurants and other hospitality holdings.
Caesars CEO Tom Reeg said operating privately will allow management to adopt a longer-term perspective. “We’re forced as public companies to think in 90-day increments,” he noted, adding that a private structure supports broader strategic planning.
The transaction is under an extended antitrust review by the Federal Trade Commission. Reeg described the FTC’s second request for information as normal for a deal of this size and said any required divestitures would likely be limited. He emphasized that the markets under scrutiny are not expected to be material to the combined business.
Reeg and others see the recent buying interest from figures such as Diller, Fertitta and activist investor Carl Icahn as evidence that sophisticated investors view Las Vegas assets as attractive despite softer visitation and price concerns. “You have some of the smartest people in the world saying, ‘How do I get in?'” he said.
Wynn presses ahead with UAE resort
Wynn Resorts CEO Craig Billings said construction on Wynn Al Marjan Island in the United Arab Emirates remains on schedule despite a roughly $600 million increase to the project’s budget. He attributed about half of that added cost to regional conflicts that disrupted supply chains and raised shipping expenses.
Billings said the site missed only one day of work, and that most delays occurred during a two- to three-month period when logistics were rerouted through alternate ports. He added that Wynn’s property and construction insurance costs at the site have not increased, thanks in part to local security assurances.
The resort, scheduled to open in September 2027, will be the first integrated property with casino gaming in the UAE and marks Wynn’s largest expansion beyond Las Vegas, Boston and Macao.
Macao: quality over quantity
Both Wynn and MGM emphasized that raw visitor counts in Macao are less important than the profile of customers who arrive. Billings said Wynn aims at the premium segment, which drives the bulk of casino revenue.
Wynn described Macao as the biggest gambling market globally — producing about five times the gaming revenue of the Las Vegas Strip while operating with roughly 30% as many hotel rooms. That imbalance, executives say, underscores the market’s heavy reliance on high-value players.
Hornbuckle noted MGM’s focus on higher-yield guests in Macao: about 94% of the company’s occupied rooms there are filled by known casino customers, and MGM is converting standard rooms into suites to match demand. He also cautioned against reading short-term weakness in Chinese luxury retail as a direct signal for gaming revenue, pointing to shifting brand preferences among Chinese consumers.
MGM’s Osaka project moves above ground
On Japan, Hornbuckle reported steady progress at the integrated resort site on Yumeshima island in Osaka. After more than a year of site preparation, steelwork is rising, and the project remains on time and on budget.
The development will span about 97 acres and 18 million square feet, with a casino floor Hornbuckle said will be four times the size of the Bellagio’s. He suggested that, if Singapore’s resorts offer a useful comparison, MGM Osaka could become a roughly $2 billion cash-flow generator.
Japan has approved the Osaka project so far. Hornbuckle argued that potential competition near Tokyo would not immediately threaten MGM’s plans, given the time needed to propose and build new resorts. “If we don’t have a five-year head start on this — and then some — I’d be absolutely shocked,” he said.
