People Inc could return with a new bid for MGM Resorts: Seaport

People Inc could make another offer for MGM Resorts International despite withdrawing its proposal to take the casino group private, says Seaport Research Partners. In a Thursday note, analyst Vitaly Umansky said the media and Internet conglomerate, chaired by Barry Diller, remained “very optimistic” about MGM Resorts. “We expect People Inc to continue acquiring stock” in the casino firm, wrote Mr Umansky, adding that he also expected MGM Resorts to resume its own share repurchase programme, which was paused after the takeover proposal was announced in June. “In our view, it is possible that People [Inc] comes back with another offer in the future,” the analyst stated. People Inc had offered US$48.30 per share for the approximately 73 percent of MGM Resorts it did not already own. Both companies confirmed the withdrawal of the proposal on Wednesday. Paul Salem, MGM Resorts chairman, said in a statement that the company’s board remained “excited to continue to lead MGM Resorts as a standalone company”. MGM Resorts is the United States-based parent of Macau casino concessionaire MGM China Holdings Ltd. In a separate note, Texas Capital Securities analyst David Bain also anticipated that MGM Resorts would resume buying back shares after its quarterly trading blackout period. He said the casino group had approximately US$1.5 billion remaining under its repurchase authorisation. Mr Bain suggested that MGM Resorts’ share price before the withdrawal already reflected considerable doubt that the transaction would proceed. He said the outstanding proposal had nonetheless provided some support for the shares amid weaker sentiment towards gaming stocks. Seaport said it had been sceptical that a deal would be completed. One reason, it suggested, was MGM Resorts’ view of its own value, including the potential of its casino resort project under construction in Osaka, Japan, which is due to open in late 2030. The brokerage said that project’s future value was not reflected in MGM Resorts’ share price. Mr Umansky said MGM Resorts’ share price “declined back… to US$38 as expectations fell for a successful buyout deal,” and was “down more than 10 percent in after-hours trading following the withdrawal announcement”. He expected the shares to settle in the mid-US$30 range before trading principally on the group’s business prospects. Although Seaport saw long-term value in MGM Resorts’ businesses in the United States, Macau and Japan, as well as in the digital segment via BetMGM, the brokerage said near-term weakness in Las Vegas and Macau was likely to weigh on the shares. Seaport has also lowered its price target for MGM China, citing reduced estimates for the local gaming market in the second half of 2026 and for 2027.