IAC Chairman Barry Diller has lived and helmed huge companies through many different revolutions, whether in business, media or technology.
In a recent interview with BloombergBusiness, Diller gives his thoughts on the massive valuations handed out to tech companies these days.
Speaking at the Bloomberg Markets Most Influential Summit, Bloomberg’s Erik Schatzker speaks about the “unicorn problem” – the fact that there are 131 privately held startups with a valuation of $1bn or more.
Diller gives a very grounded opinion on this issue – saying these valuations are meaningless, crazy and only make sense in a closed circle of investors, but on the most part “nobody actually believes these valuations”.
He says that soon, the “shoes will drop”, and we’ll see a chain reaction where reality will set in with these unicorn companies, many of which do not make any money, and valuations will become more rational.
See the IAC Chairman’s interesting interview below: