Barry Diller Explains Why His MGM Deal Collapsed and Why He Still Sees Casinos as AI-Proof Assets

Media mogul Barry Diller has revealed why his attempt to acquire MGM Resorts International fell through, while making a bold case that casinos and similar 'forever assets' could serve as a hedge against artificial intelligence. In a rare public discussion, Diller, the chairman of IAC and Expedia, said he abandoned the pursuit after failing to reach an agreement, though he did not disclose specific financial terms or the exact point of breakdown. The failed deal would have marked a major expansion for Diller, whose empire spans digital media, travel, and publishing. MGM, with its portfolio of iconic Las Vegas properties and growing online gaming arm, had been seen as a potential target for deep-pocketed investors seeking stable cash flows. Diller's comments underscore a broader trend among billionaires looking to diversify into physical, experience-based assets as technology disrupts traditional industries. He described casinos as 'forever assets' that are less vulnerable to automation and AI-driven job losses, because people will always seek entertainment and social interaction. The remarks come as AI advances rapidly, raising concerns about widespread economic disruption. Diller's perspective offers a contrarian investment thesis: while software may eat the world, the human desire for gambling, shows, and luxury hospitality could prove resilient. His decision to walk away from MGM leaves the casino giant without a high-profile buyer, but it also signals that Diller is still hunting for opportunities that combine tangible assets with long-term durability. Investors and industry watchers will likely monitor whether he revisits the gaming sector or pivots to other 'forever' categories like real estate, infrastructure, or sports.