Big Money Takes Over Sun Valley

The first thing one notices when flying into the tiny Hailey/Sun Valley Airport in Idaho is its disproportionately large hangar full of private and corporate jets. Oh, yes, it's the first sign of big money taking over the little resort town.

It could only mean one thing if private jets outnumber the commercial planes: It's that time of year again for the Allen & Co. conference, one of the most private and highly exclusive meetings among the media business elite. They come in droves -- literally.

Unlike the world economic forum's annual gathering in Davos, Switzerland, the Sun Valley conference prides itself on being a family event. And so the most powerful media executives from across the globe fly in with their spouses and children. There's something nice about seeing's founder Jeff Bezos walking hand-in-hand with his wife, Rachel Ray with her husband, NBC head Jeff Zucker with his kids at a candy store and legendary investor Chris Davis worrying that his daughter may go into a sugar rush any second from eating a massive lollipop.

The event began Tuesday and closes Saturday night. The private venue has made the conference famous for some mega deal-making. It was here, a few years back, that then Disney CEO Michael Eisner and ABC head Bob Iger decided to join forces and merge the two companies.

And so, once again, the industry titans arrived to chat, share stories and catch up with their industry buddies -- or, more accurately, frenemies -- as Yahoo's CEO and man in the hotseat, Jerry Yang, was overheard saying, "Not too many people are your friends."

He, of course, is the one guy reporters are closely following. The buzz leading up to the conference this year was all about the troubled giant Yang founded years ago. What will he do with this baby? Why won't he sell it to Microsoft? They offered him a hefty premium for the stock, so why isn't he doing what's best for his shareholders?

The drama has only grown, with corporate raider and large Yahoo shareholder Carl Icahn stepping into the mix, threatening to take over the company by proxy. So reporters and industry insiders were eager to see what happened here -- who would Yang turn to for help?

And they weren't let down.

After being spotted chatting with the Google guys (who have made it clear that they are sympathetic to Yang's dilemma, and, of course, who are known for their struggle with Microsoft head Steve Ballmer), Yang spent the majority of an evening smoking cigars with Time Warner honcho Dick Parsons.

But if it's deals the world is waiting to see come out of this event, well, then the world needs to lower its expectations. You see, here, too, some of the wealthiest business moguls are feeling less wealthy than a year ago. And while we're technically not in a recession, it sure feels like one to News Corp.'s Rupert Murdoch, Sony's Howard Stringer, Disney's Bob Iger, Parsons and many others.

Of course, they can all join Harvey Weinstein, Paramount's Brad Grey, CBS' Les Moonves, Google's Sergey Brin and Eric Schmidt and raise a glass and share a laugh. But deep down, they are all feeling the pressure of a troubled economy.

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