MGM China Holdings Ltd

MGM Resorts International received a non-binding acquisition proposal from People Incorporated (formerly IAC) on June 1, 2026, offering $48.30 per share in cash, which immediately injected a 15% acquisition premium into the stock's valuation. The proposal was highlighted in Meridian Funds' second-quarter 2026 investor letter for the Meridian Hedged Equity Fund, which gained 4.50% during the period, lagging the S&P 500's 15.20% return. MGM's performance was bolstered by record results on the Las Vegas Strip and strong MGM China operations, with a 17% mass market share in Macau. As of September 3, 2026, MGM closed at $41.13 per share, with a market capitalization of $10.43 billion, and 63 hedge funds held the stock at the end of the second quarter, up from 57 in the previous quarter.

Macau's gross gaming revenue fell 1.2% year over year in August to 21.9 billion patacas ($2.7 billion), but rose 8.1% from July, according to the Gaming Inspection and Coordination Bureau. Analysts attribute the sequential increase to pent-up demand following a two-month World Cup slowdown, with Citi noting strong premium mass play and major concerts at Galaxy Arena and Venetian Arena as positive factors. For the first eight months of 2026, Macau GGR is up 3.7% year over year to 169.1 billion patacas ($19.2 billion). Looking ahead, Jefferies forecasts GGR will rise 2% in Q3 and 4% in Q4, despite tougher comparisons, supported by a strong event calendar including K-pop groups and the NBA China Games.

MGM Resorts International signaled it will spend roughly $1 billion in each of 2027 and 2028 on its integrated resort project in Osaka, Japan, while maintaining a fall 2030 opening timeline. CFO Jonathan Halkyard said during the company's second-quarter earnings call that the funding commitment for the second half of 2026 is expected to be $125 million to $175 million, and the project remains on time and on budget. The update came as MGM reported record second-quarter consolidated net revenue, with all-time best same-store quarterly revenue from regional operations and 20% year-over-year revenue growth at MGM Digital. In Macau, MGM China held a 16.4% market share, up a full percentage point sequentially, despite a temporary World Cup impact on June volumes. The company also disclosed that its board formed a special committee to review an unsolicited offer from People Incorporated, though executives declined to answer questions on the matter.