MGM CEO Hornbuckle Open to Acquiring People Inc. After Failed Take-Private Bid

MGM Resorts International CEO Bill Hornbuckle said the casino operator could pursue an acquisition of People Inc., its largest shareholder, after the publishing company's take-private bid collapsed. Speaking at an industry conference, Hornbuckle said management would do "whatever serves shareholders best" and seek to "unlock the value of a company that we think is grossly undervalued." People Inc. withdrew its proposal last week to acquire all MGM public shares after Chairman Barry Diller said deal conditions had not aligned, though he remained open to a strategic transaction. People Inc., formerly IAC, holds roughly 27% of MGM. The Wall Street Journal reported MGM is exploring an offer for People Inc., whose titles include People and Food & Wine. Neither company confirmed the report. People Inc. shares rose 9%; MGM fell 3%. MGM traded near $32, below People Inc.'s June offer of $48.30 per share. The talks come as rival Caesars Entertainment advances a $17.6 billion sale to Tilman Fertitta's company, pending extended FTC antitrust review.