Barry Diller is a master at rousing speculation over his ambitions, and these days Diller is not only ambitious but cash-rich.  And this being a slow news week, Diller speculation is getting lots of press.
     Two rounds of reports are in the air--that he will start new cable channels to enrich his existing collection, which includes the Sci-Fi channel and the Home Shopping Network. Recent reports had him considering a women's channel to compete with Lifetime and the soon-to-launch Oxygen channel, set for a February debut.
     The other round of reports is that Diller will hook up with one of the Big Four networks to take advantage of the government's revised duopoly rules allowing broadcasters to operate more than one station in certain markets.
     Speculation was that Diller was about to link up with NBC. But that was last week.
     This week the deal is with ABC. So reports, among others, The Hollywood Reporter. 
     Here's the thinking. ABC needs outlets for its programming, and Diller, whose USA Inc. owns 13 stations, would be an ideal partner. 
        This would bring ABC up to par with NBC, which bought the struggling Pax network in order to create outlets for its programming.
        But there are yet other opportunities.
     Note that Diller and ABC each own stations in major markets, such as New York, Chicago and Los Angeles. ABC  has 10 owned and operated stations. This opens up a raft of potential deals.
     Moreover, according to these reports, Diller and Disney boss Michael Eisner have been also talking about ways to create synergies between their cable holdings.
      The issue is who would control such a joint-venture. Diller is something of a control freak, and he has made it clear he will enter no deal that involves giving up equity in his considerable media properties.
      Diller is also rolling in money, which puts him in a strong bargaining position. USA kicks off $750 million in cash flow a year.