MGM Resorts Amended Voting Pact Could Simplify Future Sale, Analysts Say
A revised voting agreement with Barry Diller's firm may ease a sale of MGM Resorts, with MGM China as a key asset.
An amended voting agreement between MGM Resorts International (NYSE: MGM) and Barry Diller’s People Inc. (NASDAQ: PPLI) may reduce barriers to a potential sale of the casino operator, according to a new report from CreditSights. The revised pact could make it easier for MGM Resorts to entertain acquisition offers from other suitors.
The analysis suggests that MGM China, the company’s Macau-based subsidiary, could become a central attraction in any change-of-control scenario. CreditSights noted that the amended agreement may shift focus toward the value of MGM China’s operations and licenses in the world’s largest gambling hub.
MGM Resorts owns approximately 56% of MGM China, which holds a gaming concession in Macau valid through 2032. The subsidiary generated significant revenue before the pandemic and remains a key growth driver for the parent company.
The voting agreement between MGM Resorts and People Inc., which holds a sizable stake in the casino firm, was originally structured to prevent hostile takeovers. The amendment reportedly relaxes certain provisions, potentially opening the door for a friendly acquisition.
CreditSights did not specify potential acquirers or provide a timeline for any transaction. The report comes amid ongoing consolidation in the global casino industry, with operators seeking scale in markets like Macau and Las Vegas.
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