Sun Valley confab convenes as media giants falter

As the world’s most powerful tech and media players descend on Sun Valley for the 25^th annual Allen & Co. confab this week, industry watchers say they’ll likely spend more time worrying over the soft economy and how to shore up faltering online revenue than brokering the multi-billion dollar deals for which the event has come to be known. The Associated Press reports that traditional media companies like Tribune Co. are going into the conference heavily battered by job cuts and dismal profits, while Viacom Inc. Chairman Sumner Redstone – a longtime confab attendee – may forego this year’s gathering altogether amid investor disappointment that the company’s 2006 split from CBS hadn’t produced the online advantages they’d hoped for.

AP also notes that Microsoft’s recent withdrawal of a $47.5 billion bid to take over Yahoo will likely affect much of the politicking, as Microsoft sniffs around for other opportunities and the ink dries on a June deal between Google and Yahoo to share online ad revenues.

While the guest list and schedule of discussions – as usual – are closely guarded secrets, Reuters/Hollywood Reporter says DreamWorks co-founder Jeffrey Katzenberg and even Steven Spielberg and David Geffen could show up, probably to promote DreamWorks’ rumored alliance with Bollywood giant Reliance.  

Other guests are said to include News Corp’s Rupert Murdoch, Google co-founders Larry Page and Sergey Brin, Microsoft CEO Steve Ballmer, Yahoo co-founder and CEO Jerry Yang and Time Warner CEO Jeffrey Bewkes.

The event began on today, July 8, and ends Sunday, July 13.