A Look Inside ‘Summer Camp For Billionaires'

Facebook's CEO Mark Zuckerberg, Vice President of Partnerships Dan Rose and Chief Operating Officer Sheryl Sandberg walk together at the Allen & Company Sun Valley Conference on July 12, 2018 in Sun Valley, Idaho. Top tech and media moguls descend on the resort every year for a week of activities - and deals.

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This week, at the “Summer Camp For Billionaires’ the top executives at the biggest and most influential companies in tech and media, including Apple's Tim Cook and Facebook's Mark Zuckerberg, will get together at the Sun Valley Resort, a getaway that dates back to 1936, in a tiny town in the Sawtooth Mountains.

NPR reports that the summer camp was suspended last year because of the pandemic. But this year, these top moguls are traveling again to Sun Valley for an annual weeklong gathering organized by a boutique investment firm called Allen & Company that is known as intensely private. Run by the same family since it was founded in 1922, Allen & Co. may be small, but it has developed some deep relationships that have led to roles in some of the biggest tech and media deals and initial public offerings in the last half decades, reports NPR.

According to the report, Allen & Co.  was an adviser in Comcast's acquisition of Time Warner Cable, a $45 billion deal, and Facebook's purchase of WhatsApp for $19 billion. Allen & Co. was an underwriter on Google's and Facebook's IPOs. For almost 40 years, its annual Sun Valley conference has been central to its mission.

Allen & Co. takes care of everything, from the accommodations to the entertainment, and they attract a who's who of the tech and media world. Regulars have included Amazon founder Jeff Bezos, Warren Buffet, and Oprah Winfrey. This week, the aggregate wealth of the men and women staying at the Sun Valley Resort is likely to reach more than $1 trillion.

"It really is elitism on full display," says media analyst Colin Gillis, the head of research at Chatham Road Partners. "But actually, it's a very private event; so, I shouldn't say 'on full display.'"

Apple CEO Tim Cook attending the Allen & Company conference on July 6, 2016 in Sun Valley, Idaho.

The report states further that The Allen & Companymany Sun Valley Conference is a spectacle. The dress code is casual and outdoorsy. Power suits are out, and fleece vests – often Patagonia – are standard. During the day, there are activities galore: tennis matches and golf games, hikes in the Sawtooth Mountains, and rafting trips down the Salmon River.

But this, as captured by NPR is more than just a week of fun or a week to unwind as prominent politicians – including heads of state – give talks and take questions. Mike Pompeo attended when he was the head of the C.I.A., and Mauricio Macri was a guest when he was the president of Argentina. Then, at night, there are cocktail parties and lavish dinners.

Participants at the event are not wined and dined by just any banker. The report submits that among Allen & Co.'s deal makers are prominent former members of Congress, including Rep. Will Hurd and Sen. Bill Bradley, and George Tenet, the former director of the C.I.A.

These are "folks at the prime of their careers, with all the relationships already built," says Drew Pascarella, an associate dean at Cornell University's SC Johnson College of Business.

As established in the report, the Sun Valley conference has gained such importance that analysts and investors pore over photos of conference participants, looking for clues about what could be the next big deal in media and tech. It is an unorthodox business strategy that has been very good for Allen & Co.'s bottom line. That's because the gathering is geared towards one thing: building relationships that may one day pay off in the shape of a major deal.

Bezos reportedly decided to buy "The Washington Post" when he was in Sun Valley.

"They've organized the biggest matchmaking service for media companies," says Steven Davidoff Solomon, the head of the Berkeley Center for Law and Business.

Amazon founder Jeff Bezos arrives for the Allen & Company Sun Valley Conference on July 13, 2017 in Sun Valley, Idaho.

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And Allen & Co., expects to take a cut from any deals that emerge from that week of fun in the sun.

"It culminates in a large fee when the time is right," Pascarella says.

"They are capable of sitting and waiting and building a long-term relationship with a client with the hopes of doing a deal every four or five years," Pascarella adds.

In its conclusion, the report states that that is the model on which Allen & Co. built its business, and it's how it continues to operate.