The non-binding proposal values MGM shares at a 24.1% premium to their 30-day volume-weighted average price through May 29, more than a 30% premium to the 90-day average price and a 10.6% premium to the stock’s most recent closing price. People Inc. already owns 26.1% of MGM’s outstanding common stock.Diller Says MGM Is Undervalued“We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities. That conviction has only strengthened over time,” said Barry Diller, chairman and senior executive of People Inc.Diller said the company believes public markets continue to undervalue MGM’s assets and growth potential. He added that the proposal would give shareholders an opportunity to “de-risk their investment and realize immediate, attractive value in cash for their shares.”Financing Plan OutlinedPeople Inc. said it expects to finance the transaction using a combination of cash on hand at both companies and additional debt and equity commitments. Following the deal, it expects to own slightly more than 50.1% of MGM’s equity, while other investors, potentially including current MGM shareholders, would hold minority stakes.The company said the transaction would not be subject to a financing condition and remains contingent on negotiations, regulatory approvals and a definitive agreement.As of March 31, 2026, IAC had $1.1 billion in cash and cash equivalents, of which $316 million is held at People Inc.MGM Stock Technical AnalysisMGM’s sharp rally has pushed the stock far above its key trend lines. Shares are trading 32.6% above the 20-day simple moving average of $38.39 and 42.2% above the 200-day simple moving average of $35.78. That suggests the stock has become extended relative to its longer-term trend.The broader trend remains bullish. The 20-day moving average sits above the 50-day moving average, while a golden cross, where the 50-day moving average moves above the 200-day moving average, formed in December 2025. Both signals point to strong underlying momentum.The bigger concern now is whether the rally has become overheated. MGM’s relative strength index, or RSI, stands at 74.51. A reading above 70 is considered overbought and can indicate that buying has become stretched. While that does not necessarily signal a reversal, it often increases the likelihood of a pause, consolidation, or short-term pullback.From a chart perspective, MGM has also broken above its previous 52-week high of $44.28. That level could now act as a key support area if the stock pulls back, as former resistance often becomes support after a breakout.