People Inc.'s MGM stake worth $2.9B exceeds its market cap; upgraded to strong buy with 66.8% upside potential.

People Inc. holds a 66.8 million-share stake in MGM valued at about $2.9 billion, surpassing its own market capitalization of $2.86 billion. The company’s publishing business is improving, with Q2 adjusted EBITDA rising to $73 million and 2026 EBITDA guidance increased. Including proceeds from a $189 million LP-interest sale, People Inc. is estimated to have around $939 million in cash. With stronger free cash flow and reduced debt, the stock trades at a 40% discount to net asset value, implying a potential 66.8% price increase, leading to an upgraded strong buy rating.