Barry Diller shares why his deal to buy MGM fell apart
Media mogul Barry Diller is no longer chasing a deal to buy MGM, but said he thinks casinos and other "forever assets" are a hedge against AI.
Barry Diller, a media mogul and investor, revealed in an interview with Business Insider's Peter Kafka that his attempt to acquire MGM Resorts International (MGM) fell through. Diller, who is also a board member of MGM, proposed to buy all of the company's assets, particularly focusing on its Las Vegas resorts, as he believed real-world experiences like a trip to Las Vegas would serve as a strong hedge against AI disruption.
He explained that his company, People Inc., considered the MGM deal beneficial due to the unique value of "forever assets" that cannot be easily replaced by digital-only businesses. However, Diller ultimately withdrew the bid due to his discomfort with the proposed structure of the deal, which involved taking on debt and seeking funding from third parties.
MGM had initially expressed interest in acquiring People Inc., but later determined that the company's main goals were to acquire MGM's shares rather than its magazine assets. Despite the failed acquisition attempt, Diller remains confident that businesses operating in the real world, such as those in Las Vegas, are largely protected from AI disruption.
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