MGM Stock Edges Up After-Hours On Barry Diller’s $12.4B Buyout Offer

• MGM has formed a special board committee and retained advisers to evaluate the bid, with sources telling WSJ that the company views the offer as undervaluing it.
• Diller publicly offered $48.30 per share on June 1 for the outstanding stock. 
• Diller made the offer for MGM days after Tilman Fertitta’s Fertitta Entertainment agreed to acquire Caesars Entertainment in a $17.6 billion deal.

MGM Resorts International shares rose nearly 3% in after-hours trading on Friday after reports surfaced that the casino operator is in advanced talks with media mogul Barry Diller’s People Inc. over a potential acquisition.

The Wall Street Journal reported that Diller, who already owns around 26% of MGM, has proposed buying the rest of the company. MGM has formed a special board committee and retained advisers to evaluate the bid, with sources telling WSJ that the company views the offer as undervaluing it.

Offer Terms And Financing

Diller publicly offered $48.30 per share on June 1 for the outstanding stock, valuing the company around $12.4 billion, the report said. This represented an upside of about 11% from the stock’s closing price on the day before the offer was made and a 3% upside from the stock’s closing price on Friday.

Diller is reportedly confident in the company’s ability to fund the transaction. Discussions heated up this month, though no agreement is assured, the report added.

Other Deals In The Casino Space

Diller made the offer for MGM days after Tilman Fertitta’s Fertitta Entertainment agreed to acquire Caesars Entertainment in a $17.6 billion deal.

In late May, Fertitta said that it would acquire Caesars for $31 per share in cash, representing a 8% premium from the stock’s closing price the day before. The deal includes a “go-shop” period that ends on July 11, 2026, allowing Caesars to seek superior offers. As of early July, reports emerged that activist investor Carl Icahn is preparing a potential rival bid of around $33 per share for the company.

The Fertitta Entertainment acquisition of Caesars Entertainment is expected to close in mid-to-late 2027, unless no rival bids emerge.

How Did Retail Traders React?

On Stocktwits, retail sentiment around MGM stock jumped to ‘neutral’ from ‘bearish’ over the past 24 hours, while message volume stayed at ‘high’ levels.

A Stocktwits user complained about the lack of regulation around prediction markets, which have imposed pressure on MGM and other casino operators.

MGM stock has gained 28% year-to-date. 

Read More: Tesla Reportedly Pushes Staff Toward Grok 4.5 As AI Spending Cap Takes Effect

For updates and corrections, email newsroom[at]stocktwits[dot]com.