A non-binding acquisition proposal for MGM Resorts International has raised fresh questions about the long-term future of the US operator's overseas holdings, with analysts suggesting a successful deal could eventually prompt the disposal of its majority stake in MGM China and its investment in the planned Osaka integrated resort.
People Incorporated, the investment vehicle controlled by media entrepreneur Barry Diller, last week offered $48.30 per share for the MGM Resorts stock it does not already own.
The company currently holds a 26.1% interest in the operator and would secure a 50.1% controlling stake if the proposal were accepted.
The offer values MGM Resorts at approximately $18bn, including debt.
Analysts at CBRE Equity Research and Seaport Research Partners have both flagged MGM's international assets as potentially significant factors in any post-acquisition strategy.
CBRE estimates MGM's 56% stake in MGM China Holdings is worth around $3.3bn and generates annual cash flow of approximately $316m.
The brokerage suggested a new owner could look to divest all or part of that holding to help finance the acquisition or fund ongoing equity commitments to MGM Osaka, which is scheduled to open in 2030 and is valued at approximately 1.51 trillion yen ($9.45bn).
Those commitments are substantial. CBRE notes MGM still faces equity payments to the Osaka project of around $400m in 2026 and approximately $1bn per year in both 2027 and 2028.
Seaport has identified MGM China chairperson Pansy Ho Chiu King, who holds over 24% of the Macau unit, as a potential buyer of the Macau stake, possibly alongside partners. Galaxy Entertainment Group and Sands China have also been cited as financially capable candidates.
For the Japan stake, Seaport points to Las Vegas Sands, Galaxy, Hard Rock International, Wynn Resorts, Genting Group and Melco Resorts & Entertainment as possible acquirers.
MGM Resorts has confirmed its board is reviewing the proposal.
MGM China has outperformed the broader Macau market over recent years and retained stronger-than-expected market share – factors that could make its stake particularly attractive to prospective buyers
