UPDATE: Murdoch Shuts Down News of the World


UDPATE: Rupert Murdoch, currently attending the Allen & Co. Media Conference in Sun Valley, has decided to shut down his News of the World tabloid in the wake of a phone-hacking scandal. Murdoch said the 168-year-old newspaper will publish its last edition on Sunday. The scandal erupted in the wake of reports that a News of the World reporter may have hacked the phones of relatives of British soldiers killed in action.

When hundreds of media moguls descend on the Wood River Valley each July for the annual Allen & Co. confab at Sun Valley Resort, news swirling around their respective media empires follows them:

A scandal cast a shadow over Rupert Murdoch's media empire today with reports that Murdoch's News of the World newspaper hacked the phones of relatives of British soldiers killed in action. A report in Britain's Daily Telegraph said that phone numbers of British soldiers were found in the files of a News of the World investigator jailed in 2007 for hacking.

Jeffrey Katzenberg, the CEO of DreamWorks Animation is downplaying an announcement that Paramount Pictures (one of his distribution partners) is launching its own animation division. When Paramount's decision was made public on Wednesday, DWA shares fell on the New York Stock Exchange.

Billionaire Warren Buffett, CEO of Berkshire Hathaway, speaking from Sun Valley on CNBC on Wednesday, said the United States Congress is "playing a dangerous game" by considering not raising the U.S. debt ceiling. Buffett compared the debate over the debt limit to "Russian roulette" with one bullet in a revolver.