So far the 2 highest rated answers appear to be looking at the case where $m$ is displaced in line with $M$ - $m$ - $M$, whereas the question asks what happens when the displacement is perpendicular to the connection line. I'll attempt to answer that.
I'll assume that the rest position of the masses were all along the x-axis. So after the initial displacement, we have $M_1$ and $M_2$ at $(-L, 0)$, $(L, 0)$ respectively, and $m$ at (0, $d_0$).
By symmetry, $m$ must always remain at $x = 0$, so its position is $(0,d)$. Assuming small displacements, $M_1$ moves about $(-L, 0)$ by small amounts $x, y$, so its position is $(-L + x, y)$. Correspondingly, $M_2$ is always at $(L -x, y)$. Displacements $d, x, y$ are all functions of time $t$.
To calculate the forces on the masses, we need to know the angle and extension of the spring at any given time. So $\theta, e$ as functions of $d, x, y$.
For small displacements, $Lsin\theta = d - y$ and $sin\theta \approx \theta$. So $$\theta = (d-y)/L$$
To find extension $e$, we start with the triangle $(-L+x, y), (0, y), (0, d)$ which has sides of length $$X = L-x$$ (parallel to x-axis), $$Y = d-y$$ (along y-axis) and $$H = L+e$$ (the hypotenuse).
Note that $Hcos\theta = X$ and $cos\theta \approx 1 - \theta^2/2$ for small $\theta$. This gives $Lcos\theta + e cos\theta = L - x$, expanding to $L - L\frac{\theta^2}{2} + e -e\frac{\theta^2}{2} = L -x$. The $L$s cancel from both sides, and we can also ignore $e\frac{\theta^2}{2}$ as it is of order $small^3$, compared to the other values which are order $small$ ($L\frac{\theta^2}{2}$ is of order $small$ as it is $large * small^2$). This leaves us with $$e = L\frac{\theta^2}{2} - x$$
Forces
The force in each spring $F = ke$ allows us to write equations of motion for each mass.
$m$ is the simplest, since we know motion is constricted to be along the y-axis by symmetry. Force on $m$ is twice the spring force (2 springs) applied at an angle of $\theta$, and in the opposite direction to the displacement $d$. So $$F_{m,y} = -2 (ke)sin\theta = -2k (\frac{(d-y)^2}{2L} -x) \frac{d-y}{L}$$
This gives us the acceleration of $m$ from $F = ma$, as $$\ddot{d} = -\frac{2k}{m} (\frac{(d-y)^2}{2L} -x) \frac{d-y}{L}$$
Next, the forces on $M_1$, resolved into $x$ and $y$ components. $$F_{M_1,x} = (ke) cos\theta = k (\frac{(d-y)^2}{2L} -x) (1 - \frac{(d-y)^2}{2L^2})$$ Which gives us $$\ddot{x} = \frac{k}{M} (\frac{(d-y)^2}{2L} -x)(1 - \frac{(d-y)^2}{2L^2})$$
And in the $y$-direction: $$F_{M_1,y} = (ke)sin\theta = k (\frac{(d-y)^2}{2L} -x) \frac{x-y}{L}$$ and so $$\ddot{y} = \frac{k}{M} (\frac{(d-y)^2}{2L} -x) \frac{x-y}{L}$$
The forces acting upon, and motion of, $M_2$ is a reflection of $M_1$.
Solution
Sadly solving these equations is beyond my mathematical capability - would be very interested to see what the outcome is. The equations are simple enough that it should be trivial to solve numerically - if I have time over the next few days I'll try to write a simulation for it to report back on the behaviour.
We're going to have the central mass moving up and down, and the end masses moving elliptically (and symmetrically or course). I strongly suspect the motion will be chaotic - it looks similar in terms of degrees of freedom to a double pendulum.