IAC Chief Executive Barry Diller took several groups to task at the Reuters Media Summit, but he reserved special disgust for CEOs at profitable companies who add to the country’s rising unemployment rate.
Also targeted by the former Hollywood executive were “incredibly, shockingly stupid” Big 3 auto executives, the Internet’s strange and growing dictionary, and Hollywood’s lack of creativity.
Diller said companies had a higher obligation, especially in tough times like these:
“The idea of a company that’s earning money, not losing money, that’s not, let’s say ‘industrially endangered,’ to have just cutbacks so they can earn another $12 million or $20 million or $40 million in a year where no one’s counting is really a horrible act when you think about it on every level. First of all, it’s certainly not necessary. It’s doing it at the worst time. It’s throwing people out to a larger, what is inevitably a larger unemployment heap for frankly no good reason.”
A few seconds later, he added:
“It’s not that you don’t want to earn as much money as you can — it is your obligation, of course — but companies have obligations beyond that and they certainly have obligations beyond that at certain times, in the times in which they operate. And they also certainly ought to know that meeting and beating expectations is probably yesterday’s game and it will be increasingly so, which would be by the way very healthy for companies. Running a company that meets and beats expectations, and that runs their company accordingly, are companies that I would question why anyone would invest in.”
Diller was equally confounded by the top three U.S. auto executives, who recently were criticized for separately flying corporate jets to Washington before hearings to request a $25 billion taxpayer bailout.
“It’s incredibly, shockingly stupid if you’re going, when you think about it. On that count alone I wouldn’t give them any money. And not because of any reason other than why would I give money to someone so dumb to go to Washington to ask for money and fly in a Gulfstream. You’d say, ‘You’re not qualified. Unless you leave, I’m not giving you money.’”
Other topics:
* When discussing social networking: “Think of the bimbo words this Internet has created: portal, social network; I could riff on …. networking, horrible word too.”
* Hollywood: “Margins used to be very good in the movie business. They’re now, what, 4, 5 percent in a decent year, so where’s the joy in that? Is there really a joy in ‘Superman 17′ or “Iron Man 2′?”
* Movie studio executives: “‘Mogul’ is yesterday. It just doesn’t apply. You use the word ‘mogul’ and what you do is conjure up the fantasy, the memory of when there were actual movie moguls who made their decisions, believed in what they did, were outsized personalities. There’s no outsized personalities in the movie business anymore.”
* Indiscriminate spending: “There is a reluctance, even with people who have vast resources. Right now, it just isn’t the order; it isn’t the day. You’re not going to see a birthday party for three million bucks. I don’t care how many billions you have or paying Mick Jagger $3 million to come and sing for your birthday. I notice this with my friend. I just notice this as a condition of this period.”
To hear the always entertaining Diller riff, go ahead and click on the links…
(Photo: Reuters)
72 comments so far
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At last, a Human Being.
- Posted by Yes He CanThank you Barry Diller.
You speak the truth.
Sure Pete. I’m sure you’ve done much better than Barry Diller ever could. That’s why we’re reading and commenting about what you said, and not Barry. Pete! Pete! Pete!
- Posted by Jerry“Bimbo words”? The man is a moron.
He is also laughably ignorant of history. The novel idea of 1930 was that businesses shouldn’t fire workers; this way the recession would be “painless”. Hoover compelled industrial leaders to maintain their workforces - many, like Henry Ford, thought this was a grand idea - and consequently, when the layoffs came in ‘31 and ‘32, they hit that much harder.
And it’s especially odd that Diller turns around and condemns the Big 3, when they more than any other industry have followed his mantra of sacrificing profitability in order to cushion the workers.
Disgusting in every conceivable way.
- Posted by CostardBarry Diller is an overbloated Hollywood type that could never manage a real company or employ anybody. He should mind his own business and stay in H Land where he belongs.
- Posted by PeteBarry Diller is a business genius. Every decade he creates a new product that transform entertainment. In the 70’s it was the movie of the week. The 80’s he created FOX network with Rupert, in the 90’s it was home shopping network. In the new millennium he was the force behind the internet. He would never have this success if he hadn’t studied the great DVD Presidential Debates Gone Wild. See it for yourself at http://www.PresidentialDebatesGoneWild.c om It should be studied in every high school history class
- Posted by jason kingBarry Diller in the 80’s said that Fox did not want to be the best independent stations. He said that they wanted to be the no. 1 network. Perhaps it has come to pass. If it hasn’t it surely will. For that alone I admire the man’s talent and desire to make everything he touches a winner.
- Posted by rickTo all the free markets: Don’t be morons. Think and listen to what he is saying. He’s not recommending companies damage themselves by not cutting costs. He’s saying don’t be a sheep and follow the herd just to make it look as if you’re doing something. We’ve already seen this happen. Companies that are very healthy announced large cuts just to try and please market analysts. If you’re making $2.50 a share and your business is stable you should not be laying off people. Also, the market loves to tout the world economy. Well, it time to think about the economy as a whole. The more companies cut the more they do damage to their own business. Many of these companies will ultimately slit their own throats by slashing spending irrationally, further contributing to the eroding economy. In someways it probably doesn’t matter. We’re seeing what Greenspan’s “Service Economy” has left us with. Nothing but a hollow shell covered in worthless paper.
- Posted by Velvet JonesDillar sounds like a man crying for Mama.
- Posted by Patti O'RileyI had the unfortunate pleasure of meeting Mr. Diller once. I have never been so eager and terrified to meet the head of a company I was working for as a contractor. He could cut thru red tape like a knife and still be polite. He could also throw things like a baseball pitcher. The one thing he did was to make a profitable company even more so. Like he has with many others.
We should have more industry leaders like Barry.
- Posted by ChasDo not blame it in on the 60s crowd … this country has never operated with more than a 90 to 180 day plan. It started with the Industrial Age, the age of stockholders.
I do not think Mr. Diller has being noble on his mind. He is saying try something else. So do I. The onus is on business to do business better. Business should be better able to figure it out than the government. And layoffs falls into the category of trying to look busy.
- Posted by Jane Feehanso profitable companies should do the exact opposite of what made them profitable? Yea, that is the path to prosperity.
- Posted by stephenKen, Barry Diller is already a successful CEO of a major corporation! Chairman and Chief Executive Officer of IAC/InterActiveCorp and the media executive responsible for the creation of Fox Broadcasting Company and USA Broadcasting.
- Posted by KennethHe’s right.
- Posted by Heidi CToo late big Ken.
Barry Diller has created from nothing every position he has ever had starting in the mailroom at the William Morris Agency. He started FOX Broadcasting Company, the USA Cable Network, was CEO of Paramount, Purchased QVC in “95”, owned or still does Expedia.com, Ticket Master, Lending Tree, Home Shopping Network and on and on.
Naw, he’ll never be the CEO of a large corporation. Good Gawd Man, Diller is the most enterprising Democrat I know of. And he is cross hair perfect on this subject.
Wes
- Posted by WesMr Diller does have a semi noble idea for a company to retain as many workers as possible during tough economic times, but he makes rash assumptions if a company fails to keep employees. Companies are in business to make money not give it away. If the economy is slowing then layoffs may be the responsible business decision. It would be unique if a company could plan for such situations during profitable times, but that has not been a goal of the hippie generation. It has been the selfish decisions of the 60s crowd that has caused many of todays problems and will continue to cause them until they are no longer in power.
- Posted by mike (palin 2012)Permit me to be more succint: surely layoffs are not a perscription for a faltering ecomomy. Can’t we be more creative?
- Posted by Jane FeehanI don’t think it would take an economic downturn for Mr. Diller to decide to lay off/ fire one who is not performing. He would have done that already. He’s referring to something else - the cutting back of employees to show the stockholders that some action - no matter how mindless - is being taken. As if that will compensate for an economic downturn. NOT.
- Posted by Jane FeehanBarry Diller as well as Ted Turner are not afraid to say what is on their minds. I also admire what Mr. Diller has accomplished in the past 50 years. His legacy is well deserved.
It surely would be wonderful if there were 30 or 50 more honest and brave heavyweights who took their own stand and told these greedy syncophant CEOs and senior management in the banking, automotive, airlines, and telecommunication industries (among many others) to treat their fellow Americans like human beings.
After all, many of these business sectors have outsourced millions and millions of jobs overseas and now we’re all getting bit in the behind with the jaws of a possible depression for not supporting our stellar workforce in the backyard.
Come on, there have got to be a few more brave souls who’ll point out those supercilious ‘Emperor’s New Clothes” glad-handers standing in line for their holiday bonuses to the tune of billions of taxpayer ‘bailout’ dollars going in one hand, whilst they hand out hundreds of thousands of pink slips just before the 2008 holidays.
As for Hollywood, pardon me, hollywood, because it doesn’t deserve a CAPITAL H, which stands for heart, hasn’t exhibited any passion from the executive level to risk creative ventures which may inspire and rejoice in the artistic capabilities found in every being on this earth. Maybe the people ruling hollywood should spend an afternoon staring at Norman Rockwell paintings to get re-introduced with their inner child.
The Grinch isn’t stealing Christmas, but with exemplary souls like Diller speaking out, we’re getting a pretty good idea who is!
- Posted by Tom AmickMr. Diller will never be CEO of a large corporation. Unneccessary staff ultimately will cause a company’s downfall. It is better to trim a few workers from payroll here and there than to take the whole company under and cause everyone to lose their jobs.
- Posted by KenMr. Diller,
Corporations have “herd” mentality. Thanks for attempting to steer the mindless away from this knee jerk response to economic stress.
You’re my new hero. Maybe Lou Dobbs should interview you …
- Posted by Jane Feehan