From Business Insider · Dan Whateley · · 1m 30s
Diller: Real assets beat AI disruption
Barry Diller says physical businesses like Las Vegas casinos are protected from AI in ways digital companies are not.
In brief
Barry Diller says physical businesses like Las Vegas casinos are protected from AI in ways digital companies are not. Barry Diller told Business Insider that physical assets like MGM's Las Vegas resorts are protected from AI disruption, unlike digital-only businesses. Originally reported by Business Insider.
Diller's AI hedge strategy
Media mogul Barry Diller told Business Insider that physical businesses operating in the real world have strong protection against AI disruption.
Why he bid for MGM
Diller's company People Inc. made a June bid for MGM Resorts International's casino and hotel business, calling them forever assets protected from AI.
Digital businesses at risk
As consumers use AI chatbots for tasks like buying plane tickets, digital-only businesses face disruption. Diller is an investor and board member at Expedia.
Las Vegas cannot be replaced
Diller said no disintermediation will come between a person wanting to visit Las Vegas and that place. No one is going to build another one.
“No disintermediation is coming between a person who wants to go to a place, and that place.”
The deal fell apart
People Inc. withdrew its bid to buy MGM outright in September after Diller became uncomfortable with the proposed structure involving debt and third-party money.
MGM's counter-offer shelved
MGM offered to buy People Inc. instead but shelved the plan. Diller said MGM likely wanted to buy back People's MGM shares, not its magazine assets.
People Inc. cuts staff
People Inc. laid off one hundred ninety five workers on Thursday. CEO Neil Vogel said the vast majority worked on print and legacy web businesses in steady decline.
What matters most
Barry Diller told Business Insider that physical assets like MGM's Las Vegas resorts are protected from AI disruption, unlike digital-only businesses.
