Byrne, 56, an executive editor and editor-in-chief of BusinessWeek.com, said he will officially step down when the sale of the magazine to Bloomberg is completed, as expected, on Dec. 1. (see Byrne's full memo to staff below). In two separate stints, Byrne spent 22 years at the magazine. In between, he served as editor-in-chief of Fast Company magazine from 2003 to 2005.

He will be re-locating to the San Francisco area. Byrne was recently married to Kate Rodler, who resides in Marin County. Byrne did not elaborate on what kind of media company he was interested in launching, or whether he had any financial backers.

During his tenure as a writer at BusinessWeek, Byrne penned a record 58 cover stories while also authoring eight books. His last book was a collaboration with GE Chairman Jack Welch, Jack: Straight From The Gut. Former BusinessWeek Editor-in-Chief Steve Shepard once jokingly referred to Byrne as Johann Sebastian Byrne because of the substantive body of work he created while at the magazine. Byrne also earned a reputation as a patient mentor over the years to lots of young BusinessWeek staffers.

Byrne was instrumental in launching BusinessWeek's Best Business Schools rankings, and as executive editor, he and his team created three additional annual franchises, including the highly successful Customer Service Champions and the Best Places to Launch a Career. In addition, Byrne recruited to the magazine such weekly columnists as Jack and Suzy Welch, Maria Bartiromo, and renowned wine critic Robert Parker.

Under his leadership of BusinessWeek's web operations, which he assumed in 2007, traffic and user engagement, with monthly unique visitors has risen by 40% to 10.4 million (more than twice the size of the magazine’s audience). Under his leadership, BW.com has won two consecutive National Magazine Awards. What's more, Byrne was inducted last year by Media Industry News into the Digital Hall of Fame and this year min named him one of 21 “Superstars of Social Media.” Byrne has nearly 18,000 followers on Twitter, under the handle JOHNABYRNE.

“John brought his prodigious energy, credibility, and creativity to BusinessWeek.com after a stellar, award-winning career in print and truly outdid himself," says Stephen J. Adler, editor-in-chief of BusinessWeek who will be leaving the magazine as well on Dec. 1. "He leaves as one of the most exciting innovators in the entire digital world, and I’m eagerly awaiting his next venture.”

Not to be overlooked is Byrne's tireless support of the BusinessWeek softball team, which has appeared in all three championship games of the New York Media Softball League, which was formed in 2007. BW captured the crown in 2008 after a record-breaking undefeated streak.

Friends & Colleagues:

After spending 22 years of my professional life at BusinessWeek, I’ve decided to move on when Bloomberg becomes its new owner next week.

I’ve had a wondrous journey here, from the day in 1985 when Steve Shepard hired me as management editor to the day Steve Adler invited me back in 2005. I came of age as a journalist and editor under Steve I and will forever be grateful to him for the chance to write big impact cover stories and take far too many book leaves. I’m especially thankful to Steve II for giving me two very big opportunities: To return to my professional home to help run the magazine as executive editor, and to later take charge of our digital operations as editor-in-chief of BusinessWeek.com.

The latter was an especially transformative job for me. I’ve become a passionate advocate of digital journalism. So it will come as little surprise that I will be planning to launch a new digital media company based near San Francisco to explore the future. I’m flattered and thankful that Bloomberg provided me an opportunity to stay with BusinessWeek, but my passion to chase this entrepreneurial venture feels like the right move at this stage in my career.

For me, BusinessWeek has been far more than a mere employer. It’s been a close personal friend. That’s largely true because of the highly talented people I’ve been able to work with and learn from over these 22 years. I thank every editor who made me look and read better than I ever was. I thank every colleague who helped to shape my ideas and thoughts. I thank every friend who lent me support and encouragement through both the good and the hard times.

I offer a special thanks to Zulma Chamorro, my assistant, who always tried to keep me on time but rarely succeeded. I’ve greatly appreciated her commitment and diligence to both me and the entire online team. I also want to single out the two managing editors I’ve worked closely with at the magazine and online: Ciro Scotti and Martin Keohan. Their devotion, intelligence and integrity will stay with me forever.

I wish Bloomberg great success with BusinessWeek. Norm Pearlstine and the rest of the Bloomberg team will bring lots of new ideas and new resources to BW that makes me excited about the brand’s future. I’ll be its biggest cheerleader from afar.

It has been a privilege and an honor to work with all of you. Let’s keep in touch.

Best,
John

A first round of bids are expected shortly after Thanksgiving from companies that have been given access to the online site – so far that’s Warner Brothers(TWX) and Fox (NWS), according to a source with knowledge of the bidding. But even if Warner and Fox submit bids, those bids aren’t likely to be the end of the MGM drama. Instead, holders of the studio’s $3.7 billion in debt are expected to use what are expected to be all-cash bids from those studios as the starting point in their decision as to the “strategic alternatives” they choose to take. An MGM spokeswoman did not return requests for comment.

MGM said on Nov. 13 that it was “beginning a process to explore various strategic alternatives, including operating as a standalone entity, forming strategic partnerships and evaluating a potential sale of the company.” It also said that it had received an extension from Dec. 15 to Jan. 31 of the forbearance agreement from its lenders that has allowed MGM to postpone debt payment that threatens to throw the studio into bankruptcy. Sources with knowledge of the online data room say that MGM and its investment bankers haven’t as yet opened access to the wide range of parties that might consider bidding on the company, instead choosing to see how high competing studios might value the company. The studios are expected to value the company on the basis of its 4,100 film library and the rights to the James Bond, Pink Panther and other franchises.

Getting a potential price tag for the studio would enable the 140-odd debtor group to determine whether they might hang onto the studio or launch a formal auction process.
At least one private equity fund, Qualia Capital, is said to be interested in joining the bidding but would do so with a structured plan that would include injecting some capital into MGM, converting some of its debt into equity and operating the company as a standalone venture n hopes of increasing its value for a sale further down the road. Another studio, Lions Gate(LGF) is also said to be interested in taking a look at MGM’s financials and might try to structure a bid. Lions Gate declined comment. Media dealmaker John Malone(LMBIA) has said he’d like to look at the data. But the Liberty Media chairman says he isn’t likely to bid on the entire studio.

In a brief interview, Tyrangiel, 37, says he plans to meet soon with BW staffers as a group and individually to gather their input so "we can formulate a strategy for the magazine together." Tyrangiel has been serving as a deputy managing editor of Time magazine and as the top editor of its online operations.

While he earned kudos for his work online at Time, Tyrangiel says he is committed to long-form journalism in print. "Listen, the big mistake magazines made was trying to imitate the Web," he said. "Magazines are read reclining, and that lends itself to longer, more in-depth stories."

Tryangiel has edited business stories in the past but he acknowledged that he is not a traditional business journalist. He says his background is an "opportunity" for the magazine. "I need help," he said, "and I am going to rely on the staff. I want the staff to stay in their lanes and be experts on their subjects."

He believes a big reason that Bloomberg LP Chief Content Officer Norman Pearlstine and Bloomberg Editor-in-Chief Matthew Winkler recruited him is that "I am a good person at bringing people together. We are going to work on this as a team."

By selecting the 37-year-old Tyrangiel who is not a business journalist per se, Bloomberg clearly wants a leader for BusinessWeek who is not only a highly-regarded editor but someone who has demonstrated he knows how to reach a wider array of readers in both print and online. A major reason Bloomberg LP executives pursued BusinessWeek was to reach a broader audience beyond Wall Street and the professional investor communities.

“I saw Josh in a number of leadership positions as he took on increasing responsibilities at TIME," says Norman Pearlstine, Bloomberg's chief content officer and a former editor-in-chief of Time Inc., Time's parent. "Working closely with him .... I came to appreciate his intelligence, curiosity, energy, and integrity. Josh is recognized within Time Inc. and its parent, Time Warner Inc., as an ‘editor’s editor’ and a natural leader. His understanding of the ways in which print and online publications can work together will serve Bloomberg well as we expand our consumer media offerings.”

In some media circles, Tyrangiel was considered a leading candidate to succeed Time managing editor Richard Stengel. According to sources, Time Warner CEO Jeff Bewkes was so impressed with Tyrangiel that he tried to recruit him to be come the editor of CNN.com, the online arm of the 24-hour cable news channel, but Time Inc.'s current editor-in-chief John Huey intervened and convinced Tyrangiel to stay at Time with the promise that he might one day succeed Stengel.

During his tenure at Time.com, Tyrangiel boosted the Web site's traffic from 400 million page views in 2006 to what could be an estimated 1.8 billion page views this year. Previous to Time, Tyrangiel worked at Rolling Stone and Vibe magazines and served as a news producer at MTV.

“Josh Tyrangiel will be a tremendous asset as we build the market presence of BusinessWeek backed by Bloomberg’s global multimedia news organization, to create the most compelling business news for the most sought-after readers.,” said Bloomberg L.P. President Daniel Doctoroff.

Tyrangiel will report to Pearlstine, who in turn will report on editorial matters to Matthew Winkler, Bloomberg's editor-in-chief. "Norm and Josh are the ideal team to deliver a terrific business magazine that brings the most trusted, most influential and most important news to a global audience of thought leaders,” said Winkler.

Tyrangiel will work alongside BusinessWeek executive editors Ellen Pollock and John Byrne and managing editor Ciro Scotti. Pearlstine announced earlier that they would continue in their roles at the magazine. Tyrangiel succeeds Stephen J. Adler, who announced his resignation as editor-in-chief on Oct. 20.

No announcement has been made yet, but Disney CEO Bob Iger is expected to describe the swap as a new policy by which he moves longstanding executives into new roles to expand their knowledge of the company.

However, longtime Disney observers say this could buttress Staggs’ chances to contend for a more senior role later on. The 19-year Disney veteran is believed to have wanted for some to become Disney’s chief operating officer, a position that currently doesn’t exist. Disney insiders say Staggs has been keen on that job ever since Iger was elevated to CEO in 2005. Rasulo, who has run the theme parks since 2002, was a highly-regarded strategic planner for Disney and then oversaw the Disney-managed theme park outside Paris before being elevated to his current role. The move is reminiscent of efforts by former Disney CFO Richard Nanula, who switched jobs to run Disney theme parks in the mid-1990s in order to bolster his own bid for a more senior job.

This post is from my colleague Ron Grover who is stuck in Los Angeles traffic

Taking equity in MGM seems dicey given that the studio’s current equity owners, which include several private equity firms, Sony (SNE) and Comcast (CMCSA), have already written down their investments from their $5 billion purchase of the studio in 2004. But Cooper, who has previously been brought in to help resurrect the fortunes of Krispy Kreme and Enron, wanted the creditors to allow allow him to raise as much as $1.2 billion in fresh debt to help jumpstart MGM’s film production. That prompted the debt holders, which could push the studio into bankruptcy, to question Cooper instead about seeking a buyer. That discussion came at a Nov. 6 meeting.

The creditors have great leverage over Cooper. In October, the committee gave MGM until Dec. 15 to forgo paying interest on the studio’s debt and to keep the company out of bankruptcy court. In return, however, the creditors insisted upon a major restructuring. Now, their patience seems to be wearing thin, according to a source with knowledge of the meeting. Cooper is said to have told the creditors that it’s unlikely he can get more than $1.5 billion for the studio, which is roughly what MGM’s rights to the James Bond franchise alone might be worth. An MGM spokeswoman would not comment.

The creditors apparently are getting close to taking the haircut just to be rid of the troublesome studio, according to the source. Among those who have been mentioned as potential candidates to buy MGM are studios Warner Brothers (TWX), Fox (NWS)and Lions Gate (LGF)and private equity fund Qualia Capital, whose principals Amir Malin and Ken Schapiro are industry veterans who have a successful record at turning around wobbly entertainment companies. The studios are said to be primarily interested in getting their hands on MGM’s 4,000-title film library, the Bond franchise and MGM’s rights (along with Warner) to make the Lord of the Rings prequel The Hobbit.

Other potentially interested buyers could be former News Corp. president Peter Chernin and one-time Yahoo CEO Terry Semel, a former Warner Brothers studio chairman. Neither man could be reached for comment.

The move, which has yet to be announced, is being driven by the Walt Disney Co.(DIS), which signed on to distribute Spielberg and Co.'s films in February. That deal included a provision by which Starz would distribute Disney's films under an existing agreement by which Starz distributes all of Disney's films to its pay TV customers. Now, it appears that Starz doesn't want to distribute Dreamworks movies to its cable and satellite viewers, and is pressuing Disney to find someone else to do it instead. Enter Showtime.

Why wouldn't Starz want to show films from the hitmakers at Dreamworks or, more importantly, give up a shot at Spielberg flick? Starz, Dreamworks and Showtime aren't commenting. But try to follow Starz' reasoning, if you can: pay channels like Starz get a piece of the annual $10-12 a month that a cable operation collects from customers who get the channel. So, let’s say that Starz has 18 million subscribers, the last number Liberty reported to the SEC. If it gets, say $5 a month from each of those subscribers, it generates revenues of $90 million a month or about $1.1 billion a year. The problem comes in the payout to Disney. Pay channels pay studios a fee on the number of films they get from the studio, but the fee escalates as the film does better at the box office.

On the other hand, Showtime could use a boost in the number of films that it puts on its service. That’s because last year it lost the films it had distributed from Paramount(VIAB), MGM and Lionsgate (LGF). After a nasty negotiation over the fees that Showtime was willing to pay, the trio left to start their own pay channel, Epix, which is just now rolling out. As Showtime starts lining up for its next round of negotiations over fees with cable and satellite operators, it likely would love to have Spielberg & Co. as one of its headline acts.

Dreamworks already has plenty of ties to Showtime. Spielberg is executive producer for the show United States of Terra that Showtime airs. Spielberg and Snider are also producing a show on the behind the scenes making of a Broadway play for the pay channel. When will the first Dreamworks flick appear on Showtime? Probably not until next year. The studio is making Dinner for Schmucks, a comedy starring Steve Carrel with Paramount, but that’s being distributed on HBO. The first Dreamworks movie for Disney – and presumably for Showtime – would likely be Real Steel, a futuristic boxing film that The Pink Panther director Shawn Levy has signed to direct.

BusinessWeek staffers learned of Neal’s departure through a memo sent out by Norman Pearlstine, Bloomberg’s chief content officer. “We are grateful for the tremendous foundation that he has built for the digital properties,” Pearlstine said. “Roger’s digital team will report to Bloomberg’s Kevin Krim.”

Earlier, BusinessWeek President Keith Fox and Editor-in-Chief Stephen J. Adler announced they would be leaving the magazine. Fox will remain at BusinessWeek’s parent, McGraw-Hill Cos.

Neal was recruited to BusinessWeek from eBay in 2006 where he served as director of strategic partnerships. During his tenure at BusinessWeek, traffic to the magazine’s website grew from 6.4 million average monthly unique visitors to more than 10 million. Among Neal’s other initiatives was to create the Business Exchange, a social networking site for the business community in which McGraw-Hill invested more than $20 million. While accounting for 16% of digital revenues so far in 2009, BX has yet to meet online traffic and revenue goals.

"I'm enormously proud of the great strides we've made growing Businessweek.com, launching Business Exchange, and finding a great home for the franchise at Bloomberg," said Neal, who was directly involved in presentations during the sales processs. "There is enormous potential in the continuing evolution of digital media and I'm very excited to pursue new opportunities in this arena."

In other personnel news, Pearlstine said BusinessWeek publisher Jessica Sibley would remain in her job following the transition to Bloomberg, as will Carl Fischer as head of marketing and communications. Tania Secor, BusinessWeek’s vice president of finance, will also be retained and fill a larger finance role with Bloomberg News, including at BusinessWeek and at Bloomberg Markets magazine.

Pearlstine said executive editors Ellen Pollock and John Byrne and managing editor Ciro Scotti would continue in their roles. He also reassured the staff that the majority of BusinessWeek employees would be hired by Bloomberg.

The search for a new editor-in-chief of BusinessWeek continues, said Pearlstine.

Sometimes even a wheeler-dealer like John Malone outsmarts himself. That’s seems to be the situation at DirectTV. (DTV), where the razor sharp media baron seems to have dealt himself out of installing his own choice as CEO of the satellite TV giant despite once owning 57% of the company’s stock. Instead, he controls 24% of the company’s votes, but seems to have been bottled up by a very independent DirecTV board.

Those are the details that are emerging from a recent SEC filing by DirecTV. The satellite company clearly wanted to stop Malone, who buys and sells companies faster than most people change socks, from exerting too much control over the company. So in what has to have been a wing ding of negotiations, the DirecTV board swapped the DirecTV stake that Malone’s Liberty Media (LMDIA) once held for shares in DirecTV that Liberty will distribute to its shareholders. In addition, DirecTV took a $2 billion loan off Liberty’s hands that it used to buy those shares in the first place, but took Liberty’s 65% stake in the Game Show network and three Fox Sports regional networks. Malone got super-voting shares that are capped at 24% of the company’s voting shares.

What motivated DirecTV’s board to do the deal? They were angling for “the elimination of a single shareholder …with the ability to veto change of control provisions,” the company said in its SEC filing. More important, the board wanted to “reduce the level of influence that Malone could exert,” they added. Anyone need more of a roadmap than that?

Why’d Malone do the deal? Mostly for tax reasons, which seem to drive much of what the media baron does. The stock-for-stock swap allows him to avoid a ton of taxes on the appreciation in DirecTV’s stock in 2006. DirecTV sweetened the deal by giving Liberty shareholders a 5.6% premium on top of that tax-free treatment. DirecTV’s shareholders will vote on the transaction on Nov. 12.

Instead, the DirecTV board, which has eight independent members (Malone is the company’s chairman and Maffei is a board members,) blocked Maffei, who now tells folks he is no longer interested. In August, the board created a search committee, which Malone heads. But the board has clearly no intention of allowing him to railroad them into taking his choice as CEO. “They gave him what he wanted with the stock swap,” says one source close to the dealmaker.” “And that’s about all they intend to give him.”

More than likely DirecTV will name its CEO sometime in late November or early December. The candidates include Bruce Churchill, who heads DirecTV’s Latin American unit, and Cablevision president Tom Rutledge. The search committee was created after DirecTV CEO Chase Carey’s resignation in June to become News Corp(NWS)president and chief operating officer. Larry Hunter, the satellite opeator’s excecutive vice-president for legal, human resources and administration, has been serving as interim CEO since Carey’s departure.

The panel was assembled to help promote a new book, “The Curse Of The Mogul, What’s Wrong With the World’s Leading Media Companies,” in which the co-authors skewer media executives for their companies’ poor financial performance over the years and for propagating a “myth” about the necessity to do mergers. Needless to say, there was no shortage of opinion on Monday night.

Lead panelist and co-author of the book, investment banker Jonathan Knee, kicked it off by saying that media executives have essentially tried to merge their way to excellence by “convincing the world there is something special and magical about media.” To hear more from Knee, click here

Former cable executive and now partner of investment firm InterMedia Partners, Leo Hindery Jr. slammed Barry Diller’s dealmaking record. “Do you think (Time Warner CEO) Jeff Bewkes and (News Corp. Chairman) Rupert (Murdoch) go to sleep at night worrying about what Barry did today? They could care less.”

Hindery said he admired Murdoch for his vision and said today’s media executives are “mushy” and have “no soul, no vision….Can anybody tell me what the vision at Viacom is today?”

Time Warner CFO John Martin, who spent a lot of night distancing himself from the disastrous AOL-Time Warner deal that happened when he wasn’t in his current job, said his company is now moving toward becoming a more focused company. He emphasized that it doesn’t need to do deals. “Abstinence is the best policy.”

When Carr asked what media company has done a good job, Susan Lyne, the former CEO of Martha Stewart Omnimedia and currently CEO of Gilt Groupe, cast her vote for ESPN, which she says has “stayed true to its mission.” But she did note that its one mistake was getting into restaurant business.

On the possibility of a merger between NBC Universal and Comcast, Hindery said “both guys really need it,” referring to (NBCU parent) General Electric CEO Jeff Immelt and Comcast CEO Brian Roberts. “Brian has the carryover (from the failed attempt to buy the Walt Disney Co.) and he can’t lose another one.” That said, Hindrey wouldn’t predict whether the deal would be a success.

In a closing shot, Hindery told Knee that after writing this book “you are never going to have another investment banking client again.”

Details are still be worked out, according to those with knowledge of the arrangement, but it is being portrayed internally as a promotion for the 49-year old Grainge, who is highly regarded by executives at Universal’s Vivendi parent company. When they signed Morris to a four-year contract extension last year, Vivendi top executives encouraged their long-time Universal chief to bring in a successor, BusinessWeek has been told. Morris will continue to work on key projects for Universal, but will turn over day-to-day operations. Morris expects to maintain his seat on the Vivendi management board, which includes top executives from the French conglomerate’s business units.

Morris, a one-time songwriter with wrote the 1966 Chiffon’s hit “Sweet Talking Guy,” was a record producer before becoming president of Atlantic Records in 1980 and president of Warner Music (WMG) in 1994. In 1995, he moved over to Universal Music’s predecessor, MCA Records, as its chairman and CEO. The company was renamed Universal the next year, and acquired Polygram in 1998. That deal gave Universal labels like Motown and A&M Records. Universal currently sells more than one-third the music sold in the U.S..

Morris is currently lining up advertisers for the expected launch next month of VEVO, an online service he masterminded for streaming music videos on YouTube (GOOG). Morris has already signed Sony and several independent labels, who will also provide their videos, and is in talks with Warner Music and EMI. The service is envisioned to be a music version of the video site Hulu, a free service by which TV networks generate revenues by selling advertisements. Universal, which has built a large business to sell artists’ merchandise, would also use the service for e-commerce.

Universal wouldn’t comment on the music company’s ongoing succession plans. But the London-based Grainge, who has three school-age children, recently purchased a house in Connecticut and is expected to wait until his kids school year ends in June before making the move to New York.

Grainge, who became Universal’ international chairman in 2005, began in the music business as an A&R executive in 1978 for CBS Records, and rose through the ranks as at Polygram before becoming chairman of Universal’s British operation in 2001.

Fox, 44, informed colleagues of his decision in a staff memo Friday afternoon, less than three weeks after McGraw-Hill announced it had reached an agreement to sell BusinessWeek to Bloomberg LP.

"I am proud that I played a role in ensuring that BusinessWeek has a new home at Bloomberg, where it will thrive under the leadership of Norman Pearlstine," Fox told staffers (see full memo below). "I am committed to the transition and helping in any way that I can." A veteran of McGraw-Hill, Fox did not specify the new role he will play at the company. He said he will take on new responsibilities in 2010, after assisting the BusinessWeek team with the transition to Bloomberg. The sale is expected to close in early December.

Norman Pearlstine, Bloomberg's chief content officer, who will serve as chairman of BusinessWeek, said: "I got to know Keith during the weeks we were doing due diligence prior to agreeing to acquire BusinessWeek. In the weeks since the acquisition was announced, my admiration for Keith and the team of senior managers he assembled
-- many of whom will continue in leadership roles after BusinessWeek is acquired by Bloomberg -- has only grown. McGraw-Hill is fortunate to have Keith in the company. We wish him and McGraw-Hill all the best."

Fox's resignation from his post follows a similar announcement from BusinessWeek editor-in-chief Stephen J. Adler, who told staff on Oct. 22 that he was stepping down. “Keith has been an extraordinary leader in the most difficult of times. He built a stellar business team, created a culture that combined high performance with exceptional collegiality, and won the respect and affection of the entire staff," Adler said of Fox on Friday. "To me, he was the ideal collaborator and the most generous of colleagues.”

Previously, Fox was president of McGraw-Hill Professional, a publishing unit, and senior vice president of marketing and business development at BusinessWeek.

KEITH FOX'S MEMO

When we announced that McGraw-Hill was exploring strategic options for BusinessWeek, I promised to communicate with you as openly and often as I could. In this spirit, I wanted each of you to know that I will be remaining with McGraw-Hill after the deal with Bloomberg is closed. I will continue to play a role in the integration post-close and plan to take on a new role at McGraw-Hill in 2010.

During this process, our collective goal was to find the best buyer for BusinessWeek. I am proud that I played a role in ensuring that BusinessWeek has a new home at Bloomberg, where it will thrive under the leadership of Norman Pearlstine. I am committed to the transition and helping in any way that I can.

It’s been a privilege to be the President of BusinessWeek. I thank Terry McGraw for his confidence and trust in me and Glenn Goldberg for his support, direction, clarity, and sense of humor. I’ve also been a member of an amazing team which has navigated the transformation of the media environment with agility, focus, passion, and integrity. The team – Steve Adler, Jessica Sibley, Tania Secor, Linda Brennan, Roger Neal, and Carl Fischer – is the best in the industry. Like BusinessWeek, they have bright futures ahead of them. I will miss the daily interaction, but I am wiser (and a little grayer) because of their collaborative spirit and desire to make BusinessWeek the global leader in business that it is today.

I also have a special thanks to Patricia Hipplewith, my assistant, who juggled my calendar, protected me from solicitors, and kept me on schedule and well fed! She is the personification of commitment and integrity.

I am humbled by BusinessWeek’s 80-year history. Thank you for allowing me to play a small part in it.

The Journal's newsroom has been abuzz for several weeks about possible layoffs. This comes as the period to accept attractive severance offers, made to senior staffers following News Corp.'s acquisition of Dow Jones at the deal's close two years ago, is set to expire in December. That could prompt additional resignations from editors not wanting to miss out on a lucrative buyout deal.

Since late 2007, The Journal has laid off about 50 people, mostly due to the closing of the news desk in South Brunswick, N.J. and its fashion industry reporting bureau. Earlier this week, three people were let go from the color lab within The Journal's art department.

Forbes announced this week it would be cutting staff, perhaps by as many as 50 positions. And The Times is looking to reduce its newsroom by 100, first by offering voluntary buyouts and then through layoffs.

Smith will continue to provide consulting services to CBS on its various interactive ventures, but is leaving in January to start his own consulting firm. A one-time venture capitalist and investment banker with media firm Allen and Company, Smith had advised Comcast (CMCSA), Google (GOOG) and CBS in his prior life. At CBS, he is CEO of the unit that included CNET sites like CNET.com, Chow.com, and BNET.com as well as the cbs.com and cbsports.com that distribute shows from CBS's existing businesses.

Smith was also a key driver behind CBS's efforts to stream high-end sporting events, including the annual March Madness college basketball tournament games, which had grown greatly in popularity. Under Smith, CBS had kept its distance from Hulu.com, the online site that currently streams shows from NBC, Fox, and ABC. The company was instead building its own TV distribution arm through its TV.com site.

Current interactive president Neil Ash will continue as president of the interactive unit.

In hope of attacking that situation, and maybe of keeping dive-bombing DVD sales from falling even faster, Hollywood is contemplating all kinds of course changes. They include charging more to RedBox and Netflix, selling their DVDs to those companies later than they sell them to retailers like Wal-Mart, and making the companies destroy old DVDs rather than putting them in a cheapie bin somewhere. What’s the common theme? They want the consumer to pay more to rent, or better yet, to buy their discs.

Which is why I loved today’s announcement that Paramount Pictures (VIAB) has found a different way to generate more revenues from its films and the DVD market. Quite simply, they’ve made a fairly inexpensive film called Circle of Eight and are premiering it online with MySpace (NWS). The idea is to create buzz, and then rent or sell it through Blockbuster (BBI) and, I have to assume, other retailers down the road.

“It’s about finding an audience who really wants to see this kind of a movie, give them a high-quality Hollywood style movie and build awareness,” says Thomas Lesinski, president of Paramount Digital Entertainment, who dreamed up the concept. “It’s just like a Hollywood premiere at a movie theater.” Of course, it costs less to make, you don’t have to stage an expensive red carpet event, and you don't need to spend a ton on TV commercials.

And you don’t need to worry about theater owners, who complain loudly whenever a studio tries to hurry out a film on DVD too soon after it appears on the big screen. In this deal, MySpace gets the movie for seven weeks, then Lesinski and crew can do whatever they want with it. Better yet, Circle of Eight, which is presented in 10 parts online, is sponsored by Mountain Dew (PEP), Blockbuster, and software maker Adobe (ADBE), which have added games and other online extras. As a result, it may well be profitable even before it hits the DVD stores.

Which is exactly what Hollywood would love to do with more of its flicks. Of course, that ship has sailed. Movie stars cost a ton, so do marketing campaigns to launch movies these days. But maybe there is a place for small films that make money for a studio using the Internet. As microscopic budget flicks like Paramount’s up-from-nowhere Paranormal Activity show, sometimes you can make more than a small pot of money without all the frills.

Circle of Eight may not be ready for the big screen, but I’ve watched it and it looks like a Hollywood production. It stars a couple of actors I’ve seen on the screen before, and was directed by Stephen Cragg, whose resume includes TV episodes of ER and NCIS. Its soundtrack was created by a bunch of high-end composers, and the opening screen features a speeding police car and a guy who jumps to his death. Hey, no one ever said this was Transformers. Still, as Hollywood struggles with how to resurrect a broken business model, at least this time a studio isn’t asking the consumer to pay a higher price or wait weeks before seeing a movie.