MGM Resorts ends merger talks with Barry Diller’s People Inc.

MGM Resorts has ended merger talks with Barry Diller's People Inc., according to Skift. The two sides reached a new agreement on how to use their board votes, effectively ending the possibility of a merger.

The amended voting pact requires People Inc. and Diller to vote all their MGM Resorts shares in line with the board on any change-of-control transaction, with a cap of 29.9% ownership. MGM agreed not to take defensive or adverse actions against the deal.

The proposed $18 billion take-private offer, which included a 10.6% premium at $48.30 per share, fell through due to financing problems. While MGM Resorts CEO Bill Hornbuckle said the parties agreed on price, People Inc. was unable to assemble the necessary financing syndicate and withdrew the offer.

MGM Resorts has faced a 2% revenue decline in the third quarter on the Las Vegas Strip, attributed to higher airfares and gas prices, contributing to uncertainty about its valuation and future ownership.

The failed bid raises questions about the outlook for large leisure buyouts and the financial pressures facing MGM Resorts and other operators on the Las Vegas Strip and in Macau, as noted by Skift.

Industry watchers will be monitoring who might next seek to acquire a major U.S. gaming and resort operator amid tight financing conditions for take-private deals.