Chapter 282: The Sun Valley Conference
Because news of Michael Eisner's hospitalization leaked to the media, the situation quickly spiraled out of control.
Even though his close ally Michael Ovitz attempted to contain the coverage, rumors still swept across Hollywood—some tabloids even claimed Eisner had already died.
As the speculation intensified, The Walt Disney Company could no longer ignore it. Eisner had to prove he was still alive and well.
A list was quickly drawn up—key figures in media and public opinion. Eisner personally called each of them to reassure them that his condition was stable.
Shortly afterward, he publicly disclosed his health status and allowed visitors.
The very first to arrive? Jeffrey Katzenberg.
But inside the hospital room, when Eisner read several articles from The New York Times and Los Angeles Times, he was furious.
The reports painted a troubling picture:
Hollywood was watching Disney's internal tensions escalate
Eisner had entered the hospital quietly, seemingly isolated
Meanwhile, Katzenberg appeared deeply connected within Disney, surrounded by allies
The implication was clear—and it enraged him.
At the same time, in Idaho, Aaron arrived at the private airport of Sun Valley with Christiana Reali, stepping off his Gulfstream IV jet.
Planes of all sizes filled the tarmac.
He had arrived at the annual Sun Valley Conference.
"Welcome, Aaron!" said Herbert Allen Jr. with a smile, shaking his hand.
"You're the youngest group chairman here."
"Thank you."
Soon, Aaron and Christiana checked into a nearby luxury lodge.
This year's attendees were a who's who of global business:
Warren Buffett and Charlie Munger of Berkshire Hathaway
Jack Welch of General Electric
Katharine Graham of The Washington Post
Laurence Tisch of CBS
Edward Johnson III of Fidelity
Charles Johnson of Franklin Templeton
At an evening reception, Charles Johnson—an old acquaintance—raised his glass with a grin.
"A lot of people here are interested in Dawnlight."
"No plans to take the company public yet?"
Aaron glanced toward Laurence Tisch in the distance and took a sip of his drink.
"Dawnlight doesn't lack capital right now. As for going public… there's no rush."
After all, Tisch and his brother controlled CBS—one of the three major broadcast networks.
With Hollywood studios increasingly seeking integration with television networks, Aaron knew Dawnlight couldn't afford to fall behind.
Distribution power mattered.
Johnson shrugged, then added with a smile,
"By the way—sales for Victoria's Secret are climbing fast."
"The fashion show was a big success."
…
While Aaron was networking in Sun Valley, Hollywood was shifting rapidly.
After a period of recovery, Eisner was discharged from the hospital.
And immediately, he pinned the recent wave of negative press squarely on Katzenberg—calling his actions reckless and foolish.
Then, without hesitation, Eisner began stripping Katzenberg of power:
Joe Roth took over film production
Rich Frank handled television, home video, and the Disney Channel
Roy E. Disney oversaw animation
All three would now report directly to Eisner—not Katzenberg.
At Disney headquarters in Burbank, inside Eisner's office—
Katzenberg stood there, stunned, staring at his longtime ally.
"Can you tell me why, Michael?"
Eisner frowned, his tone sharp.
"Those articles caused me enormous trouble," he snapped.
"They put Disney at risk."
"And you're telling me you had nothing to do with it?"
Michael Eisner was furious.
The tone of the newspaper coverage was far too obvious—praising one side while undermining the other. Some reports even claimed that if Jeffrey Katzenberg wasn't appointed president of The Walt Disney Company, he would resign.
To Eisner, this could only mean one thing:
Katzenberg had orchestrated it—pressuring for the presidency.
Katzenberg froze for a moment, then suddenly grew emotional.
"Michael… I've never told you how important you are to me," he said, voice rising.
"And I never told Frank Wells how much I valued working with him!"
Eisner was caught completely off guard by the intensity of his reaction.
After a pause, Katzenberg's tone softened, turning weary.
"…Maybe it's time for me to leave Disney."
This was exactly what Eisner had wanted to hear for a long time.
And yet—unexpectedly—he changed his tone.
"Maybe you should reconsider," Eisner said, now sounding almost conciliatory.
"Stay. I can help you secure a seat on the board."
"Perhaps… we should talk about your ideas for restructuring Disney?"
"Restructuring Disney?"
Katzenberg was stunned.
Corporate restructuring was typically the responsibility of the company president.
Why was Eisner suddenly asking him about it?
The abrupt shift in attitude left him visibly confused.
From his perspective, it seemed possible that his mention of resignation had shaken Eisner.
If restructuring was truly on the table… then perhaps the position once held by Wells might still be within reach.
Hope flickered again.
Before long, Katzenberg began preparing plans for a company-wide restructuring.
But the moment he left the office, Eisner picked up the phone.
He called Peter Schneider from the animation division.
"Keep an eye on Katzenberg," he instructed.
"And make sure there are no issues with the next animated feature—Pocahontas."
Everything Eisner had just said—about keeping Katzenberg, about restructuring—was nothing more than a delaying tactic.
He hadn't yet secured Michael Ovitz's agreement to join Disney.
Letting Katzenberg walk away now would only create instability.
For the moment, it was better to keep him close—
—even if only temporarily.
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