"I think Twitter is very good, nice — not especially growing, but not pathetic at all because a lot of people use it, and it's got a good advertising business," Diller told CNBC in an interview Tuesday. "I don't think it connects to much else. So yes, it has big data. You can use the data, but all this noise of buying something not for what it does, but for what you think it can connect, I think, is mostly hogwash."
Twitter has been rumored to be for sale, according to multiple sources. Its data has been seen as one of its most valuable assets, because it can give companies insight into public opinion.
Sources told CNBC on Tuesday that Salesforce.com and Twitter are continuing talks. Analysts have cited IBM and Oracle, among other companies as potential buyers. The stockended a three-day losing streak on Tuesday after Evercore and Deutsche Bank upgraded the shares and reiterated a buy rating, respectively.
Diller's comments came at Virtuous Circle 2016, in Menlo Park, California. The conference brings together internet business leaders and elected officials to talk about industry trends, policy and innovation. IAC is the parent company of such internet businesses as Match Group, Home Advisor and Vimeo, as well as websites like The Daily Beast and CollegeHumor. It also spun off Expedia into a separate business in 2005.