“I got seduced into Newsweek,” said Barry Diller today about his plan to sell the new magazine brand. “We started Daily Beast and it worked really well and we built up nice audiences. But we somehow got into Newsweek, this news book, and it has taken a year and a half of focus unfortunately and I want to get back to the Daily Beast“. The IAC chief would not say how much he wanted for the now-shuttered weekly newsmag or who is interested. “It much better belongs in a widely diversified publishing company,” was all he added. Diller was appearing Wednesday with CNN chief Jeff Zucker at this year’s D11 conference in Ranchos Palos Verdes.

Regrading his Aereo streaming service, Diller said it is spreading out to 22 more cities in the next few months, and that if it gets to 15 million-20 million homes “we can start our own programming”. And legal battles with broadcasters are only helping his cause. “I’m happy they sued us because its gotten Aereo known to more people. All this drama is good for us,” Diller said. “It is very overblown this thing. I don’t want to beat up broadcasters…I want to move the line to open Internet systems.” He added, “I think the more video, all forms of video, you can get over the Internet protocols, the better off the world will be,” he added. Aereo is already in NYC and Boston and scheduled to launch in Atlanta in mid-June.

Related: Les Moonves Says CBS Could Go To Cable In “A Few Days” If It Loses Aereo Suit

“We’re out to get the centricity moved to the Internet,” Diller said of his “antenna”-selling business. “The dominos are going to fall anyway,” he said of the closed packages of cable providers. “Closed systems like cable TV will not sustain over time,” he repeated several times. “With people who don’t now use cable they are open grazing and they are all on the Internet,” he noted of the new generation of TV viewers Aereo is aiming to capture.

Related: John McCain Introduces A La Carte Legislation To Stop Bundling & Broadcasters Moving To Pay TV

(Photo: AllThingsD)

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