The IAC chairman and major investor in Aereo says he doesn't see a path forward for Aereo if it loses its Supreme Court case.
"The idea of you paying thousands of dollars a year for a package of cable channels that you don't watch doesn't make any sense," Diller said.
The $300 million cash deal for the struggling information site is expected to close in the next few weeks.
IAC/Interactivecorp is willing to pay $30 million more than Answers.com has agreed to pay for the information site, according to Reuters.
The billionaire, speaking in a Bloomberg Television interview, says that the controversial streaming service is going to ramp up marketing efforts.
The broadcasters suing the startup predict doom for free TV if the video service is allowed to operate. But some industry experts ask "so what"?
In a suit against nearly all the major broadcasters, Aereo claims it doesn't infringe on the broadcasters' copyrights.
The always-frank Diller told a crowd at SWSX he's eager, ready and within the law to help people watch live broadcast TV without paying the broadcasters.
The IAC founder and chairman was a relatively cynical, curmudgeonly presence at the SXSW conference, which is better known for dreamy futurists and wacky big ideas.
The continually troubled digital-media mogul gives up his CEO post, and major shareholder Liberty Media heads for the exit in exchange for $220 million in cash and a big IAC subsidiary.