Billionaire Barry Diller Says Bail Out Everyone And 'worry About Paying The Bills Later'

Billionaire businessman Barry Diller told CNBC on Thursday the United States government should bail out all companies that have been hit hard by the coronavirus, including those in the travel industry. 

"The damage that is being done every day is enormous," Diller said on "Squawk Box." "Everybody needs to be bailed out for this one time thing, and we'll worry about paying the bills later."

The comments from Diller, chairman of travel site Expedia and digital media group IAC, came after major U.S. airlines and the Treasury Department reached a deal that gives the carriers access to loans and grants to support payroll. In return, the government gets warrants that could become equity stakes. 

Diller said Expedia is generating no revenue and will need to cut costs, including in advertising. He said the company spend about $5 billion on marketing last year but would likely spend less than $1 billion this year. 

Shares of Expedia, like those of other travel companies, have been pummeled as the pandemic has spread. The stock is down about 44% year-to-date. 

Diller's IAC acquired Expedia in 2003 in the aftermath of the Sept. 11 terrorist attacks less than two years earlier, but the executive said the shock to the travel industry is unlike anything he has ever seen. 

"I don't think this is analogous to anything. It certainly isn't analogous to 9/11," Diller said.

Diller said that in order for the economy to start moving again, people need to become comfortable being in close proximity with others. He pointed to movie theaters as a business that could not recover unless people are willing to be close to one another. 

"The fear is the next thing that's going to have to thaw," Diller said.

RECENT NEWS

Stocks Rise After Better-than-expected Jobs Report To Close Out Winning Week

Stocks rose on Thursday following a better-than-expected U.S. jobs report as the economy tries to recover from the coron... Read more

Record Jobs Gain Of 4.8 Million In June Smashes Expectations; Unemployment Rate Falls To 11.1%

Another big contributor to the decline of the jobless rate was a plunge in those on temporary layoff. That total fell by... Read more

17.6 Million Unemployed Americans Probably Won't Return To Their Pre-pandemic Jobs

The share of the workforce currently out of work with no reasonable chance of returning to their jobs is about 11%, or a... Read more

GM, Fiat Chrysler U.S. Auto Sales Tank In Second Quarter As Coronavirus Saps Demand

U.S. vehicle sales in the second quarter for General Motors, Toyota Motor and Fiat Chrysler plunged by more than 30% Read more

Mortgage Demand Falls For The Second Straight Week, Signaling A Potential Slowdown In The Housing Recovery

The surge in mortgage demand from homebuyers over the past two months appears to be waning, even as mortgage rates conti... Read more

Fed's Bullard Warns Of Financial Crisis Risks As Virus Cases Spike, FT Reports

St. Louis Federal Reserve Bank president James Bullard has warned that a growing number of bankruptcies due to the coron... Read more