MGM Resorts and Barry Diller Revise Pact, Cap Ownership and Set Takeover Voting Rules

MGM Resorts International and Barry Diller’s People Inc. have updated their voting agreement, placing a 29.9% cap on the media mogul’s beneficial ownership in the casino operator. The revision also introduces formal guidelines for how Diller and People Inc. must cast their votes should a third party attempt to acquire the company.

The amended pact replaces the previous arrangement between the two entities, which had not specified such a precise ownership ceiling. The new cap effectively limits Diller’s voting power while keeping the door open for him to approve a takeover bid under the outlined rules.

Under the updated terms, Diller and People Inc. are now bound by explicit procedures when evaluating an unsolicited offer. This change provides a clearer framework for decision-making in a potential acquisition scenario, reducing ambiguity for both MGM’s board and outside suitors.

The adjustment comes as MGM continues to navigate a complex shareholder structure that includes notable individual investors like Diller. However, the company has not disclosed whether the revision was prompted by any specific takeover interest.

MGM Resorts has not commented further on the strategic rationale behind the amendment, and People Inc. has not issued a public statement regarding the updated agreement.