Barry Diller's Low Offer for MGM Resorts May Be Rejected
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 01 2026
0mins
Source: seekingalpha
- Acquisition Offer Analysis: Barry Diller's $48.30 per share offer for MGM Resorts (MGM) is deemed too low by analysts, suggesting it may be rejected by MGM's board, indicating market expectations for a higher bid.
- Market Valuation Comparison: Analyst Steven M. Wieczynski estimates MGM's fair value should be between $50-55 per share, based on Tilman Fertitta's recent acquisition of Caesars Entertainment (CZR) at $31 per share, reflecting market recognition of MGM's potential value.
- Stock Price Reaction: Following the announcement of Diller's bid, MGM's stock surged 17%, trading above $51 per share, indicating investor belief that MGM's value is underestimated and anticipation of a higher acquisition offer.
- Strategic Buyer Outlook: Analysts note that despite optimism regarding MGM's high-quality assets and growth potential, the lack of credible strategic buyers may hinder the acquisition process, particularly given People's ~26% voting rights, which may deter potential private equity buyers.
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Analyst Views on MGM
Wall Street analysts forecast MGM stock price to fall
14 Analyst Rating
5 Buy
7 Hold
2 Sell
Hold
Current: 48.970
Low
29.00
Averages
40.31
High
56.00
Current: 48.970
Low
29.00
Averages
40.31
High
56.00
About MGM
MGM Resorts International is a global gaming and entertainment company with national and international destinations featuring hotels and casinos, meetings and conference spaces, incredible live and theatrical entertainment experiences, and a range of restaurants, nightlife and retail offerings. Its segment includes Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. Las Vegas Strip Resorts consists of casino resorts: Aria, Bellagio, The Cosmopolitan of Las Vegas, MGM Grand Las Vegas, Mandalay Bay, Luxor, New York-New York, Excalibur, and Park MGM. Regional Operations consists of various casino properties: MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica, Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York, and others. MGM Digital is its online gaming portfolio which consists of LeoVegas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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