MGM has formed a special board committee and hired advisers to evaluate Barry Diller’s proposal, while people familiar with the matter said the company believes the offer undervalues it.
Bleichmar Fonti & Auld LLP said it is investigating Barry Diller’s bid to acquire the remaining shares of MGM Resorts International for $48.30 per share. The firm said the review centers on potential breaches of fiduciary duty under Delaware law because Diller sits on MGM’s board of directors while People, Inc., the company he founded and controls, is MGM’s largest single stockholder. People made the unsolicited offer on June 1, 2026. MGM has since set up a special board committee and hired advisers to evaluate the proposal, according to people familiar with the matter, and some of those people said MGM believes Diller’s offer undervalues the company. BFA said People also recently entered a governance agreement with MGM giving it the right to designate two MGM directors, a structure the firm argues could create conflicts of interest that would need to be addressed through Delaware’s standards for cleansing conflicted transactions and ensuring fairness to stockholders. MGM said in a June 1 news release that its board “will carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the Company and all of its shareholders.” The firm is urging current MGM shareholders to contact it to discuss their rights.