The mayhem in the media industry continues. The Wall Street Journal, a News Corp (NASDAQ: NWS) property, is closing its Boston bureau and sending nine employees into the wind. The newswire and MarketWatch operations are going to stay open in Boston, however, with no headcount impact.

The Journal doesn't have any plans to close other offices, according to a memo by managing editor Robert Thomson: "there are no plans, nascent or otherwise, to close any other U.S. or international bureau." The WSJ will still support an "investigative function" in Boston, but the New York-based Money and Investing team will cover Boston's mutual fund industry, which boasts such heavy hitters as Fidelity.

At the same time, magazine company Time Inc., owned by Time Warner (NYSE: TWX) is looking to cut $100 million in expenses, and layoffs will undoubtedly figure into the equation. The company that owns Time, Fortune, People and Sports Illustrated – and falls under the same umbrella as AOL, which owns BloggingStocks – is feeling the squeeze of a media recession that's even worse than the regular recession we've all been battling for what feels like decades.

Russian business runs on different rules. News Corp.'s (NYSE: NWS) Rupert Murdoch, who has been doing business in China for years, is nervous about his Russian enterprises. This morning, the FBI announced it had rounded up a ring of data thieves, many from former Soviet Union countries. And then there's the little matter of BP-TNK, a joint venture between BP (NYSE: BP) and a Russian company, whose Russian shareholders are booting out its Western executives so they can take over the operation.

Here's what Silicon Alley insider reports Murdoch had to say about doing business in Russia: "We have great growing business there but just -- this is purely me, I'm sorry, I'm -- the more I read about investments in Russia, the less I like the feel of it. The more successful we'd be, the more vulnerable we'd be to have it stolen from us, so there we sell now."

In case you missed it, The Detroit Free Press reports that an international ring of data thieves used wardriving -- the practice of stealing data from unprotected Wi-Fi networks -- to take 40 million identities, use the information to print fake ATM cards, and steal millions of dollars. The corporate victims include customers of TJX (NYSE: TJX), Barnes & Noble (NYSE: BKS), and OfficeMax (NYSE: OMX). Five of the 11 defendants are from former Soviet Union countries -- "one is from Estonia, three are from Ukraine, and one is from Belarus."

MAJOR PAPERS:

• The Wall Street Journal reported that a spokesperson for New Corporation (NYSE: NWS) said the company has dropped out of the bidding for Tribune Co's (NYSE: TXA) Newsday. This leaves Cablevision Systems Corporation (NYSE: CVC) as the apparent winner of the auction.
• According to people familiar with the matter, the Wall Street Journal reported that American International Group Inc's (NYSE: AIG) airplane-leasing unit is considering a split from the company. The people said International Lease Finance Corp have grown "increasingly concerned" the company will be hurt by AIG's financial troubles.
• Royal Dutch Shell Plc (NYSE: RDS.A) and Spain's Repsol YPF SA (NYSE: REP) are pulling out of one of Iran's biggest gas projects, the $10B-plus development of phase 13 of South Pars, the world's largest gas field, the Financial Times reported.

WEB SITES:

• Bloomberg reported that HSBC Holdings Plc (NYSE: HBC) set aside a smaller-than-forecast $3.2B for bad loans in the U.S. The bank also said its Q1 profit was higher than Q107.

MAJOR PAPERS:

• In an effort to refocus on coffee, the Wall Street Journal reported that Starbucks Corporation (NASDAQ: SBUX) will attempt overhaul its entertainment business.
• Private equity players Apax Partners and Kohlberg Kravis Roberts, along with Lehman Brothers Holdings Inc (NYSE: LEH) in a supporting role, are looking to form a consortium to examine a bid for the insurance assets of The Royal Bank of Scotland Group Plc (NYSE: RBS), the Financial Times reported.

OTHER PAPERS:

• Yahoo! Inc (NASDAQ: YHOO) is going to let outside developers create applications across its network of sites, the New York Times contended. The search engine is also going to combine its online services under the social profile concept in an attempt to allow its users to replicate the social experience that social networks like News Corporation's (NYSE: NWS) MySpace and Facebook have made so popular.

WEB SITES:

• Research In Motion Limited (NASDAQ: RIMM) will reportedly delay the launch of its new hotly anticipated 3G BlackBerry phone, Fortune reported, which the company is developing for AT&T Inc (NYSE: T). The phone, originally supposed to be launched in June, may not be released until as late as August, inside sources said.

MAJOR PAPERS:

• If the financial crisis hasn't crippled banks enough, the cost to build bank loan reserves may be just as painful, according to the Wall Street Journal's "Heard on the Street". The need for larger reserves is eating away at earnings and is showing up in first quarter reports for banks such as Bank of America Corporation (NYSE: BAC), whose results took an additional hit because of a $6B addition to its loan loss reserve.
• Just four months after Journal parent Dow Jones & Co. was bought by Rupert Murdoch's News Corporation (NYSE: NWS), Wall Street Journal managing editor Marcus Brauchli is expected to resign, according to the Wall Street Journal. Journal publisher Robert Thomson may temporarily take over until a new managing editor is hired.
• The Financial Times reported that Citigroup Incorporated (NYSE: C) is seeking advice from IT group Hewlett-Packard Company (NYSE: HPQ) on how to overcome a crisis without breaking up the company.

WEB SITES:

• According to Reuters, activist shareholders in ASM International (NASDAQ: ASMI) believe, by giving more equity to top managers, that they can boost its value by $1.6B.

MAJOR PAPERS:

• To help stop Microsoft Corporation's (NASDAQ: MSFT) $44.6 billion takeover offer, Yahoo! Inc. (NASDAQ: YHOO) is in talks with Time Warner Inc. (NYSE: TWX) about combining internet operations. Meanwhile, Microsoft is talking with News Corporation (NYSE: NWS) about a joint bid for Yahoo! And Yahoo! is is considering a possible advertising agreement with Google Inc. (NASDAQ: GOOG), the Wall Street Journal reported.
• The Wall Street Journal also reported that IAC/InterActiveCorp (NASDAQ: IACI) is planning to launch a number of new web sites, and hopes to capture a variety of audiences including African-Americans, children and news followers.

WEB SITES:

• Lehman Brothers Holdings Inc. (NYSE: LEH) said it liquidated three investment funds, with assets valued at $1 billion as of February 29, because of "market disruptions," Bloomberg reported.
• Reuters reported that the U.S. Department of Defense approved the sale of 157 armored trucks to Britain. The trucks are built by Force Protection Inc. (NASDAQ: FRPT), and the deal is valued at $125 million if all options are exercised.

Over 100,000 people tried out for American Idol, which kicked off its sixth season Tuesday night on News Corporation's (NYSE: NWS) Fox Network. There's a way you can ride Idol's popularity -- by buying stock in CKX Entertainment (NASDAQ: CKXE). I enjoyed watching Judge Jewel and Shakira-look-alike, Perla Menses, in Minneapolis, but I'll skip the stock.

MSNBC estimates that Idol is a $2.5 billion franchise with at least five revenue streams, including:

• Text messaging -- In 2006, 64 million votes were cast for favored contestants using AT&T Inc.'s (NYSE: T) Cingular cell phones;
• Product placement -- In 2006, advertisers paid 4,086 times to have their products featured on Idol;
• Licensing -- Through Freemantle Media, which owns the licensing rights to Idol, 40 licenses have already been issued, and Freemantle is working on deals for Idol ice cream, Idol Monopoly and an Idol theme park attraction;
• Online ads -- McDonald's Corporation (NYSE: MCD) and MasterCard Inc. (NYSE: MA) are buying advertisements to accompany an online version of Idol that will be streamed over the Internet at the end of the TV broadcast; and
• Written word -- Heart Full of Soul: An Inspirational Memoir About Finding Your Voice and Finding Your Way, by 2006 winner Taylor Hicks is due out on April 3rd. Or you can subscribe to American Idol: The Magazine.

But the public company with the biggest share of the Idol franchise is CKX. CKXE owns the company that produces Idol, 19 Entertainment, as well as the rights to the names, images and likenesses of Muhammad Ali and Elvis Presley (as well as the operation of Graceland) and a firm that manages Robin Williams, Billy Crystal and Woody Allen.

If I Did It, how much would I be worth? That's the question many buyers on eBay and reporters from the Wall Street Journal are asking today. Many listings of If I Did It, OJ Simpson's supposedly hypothetical retelling of the murders of Nicole Brown Simpson and Ron Goldman, have already been pulled by eBay, Inc. (NASDAQ:EBAY) at News Corporation (NYSE:NWS)'s HarperCollins unit's request. The bids were reportedly in the thousands before the auctions were ended, although many booksellers interviewed by the WSJ said they would put the price of the book closer to $1000 (although they'd only pay $100, buy low, sell high, anyone?). This auction ended at a whopping $8300.

Some put the book's price between $2000 and $5000, although everyone seemed to agree that such a price wouldn't be sustainable in the long run.

Instead of beating the First Amendment drum, I'll just riff on a capitalist beat: people obviously want to read the darned thing! My objection would likely be more literary snobbishness than righteous horror -- Judith Regan ain't known for her wordcraft. But if people want to read it so badly they'll pay thousands ...

Finally, Fox did something I can applaud. Today Fox's parent News Corporation (NYSE:NWS) announced that it was canceling the OJ Simpson book If I Did It, and corresponding TV interview. The project was so vile, so immoral, that even the media's most whorish member bowed to universal disgust and kaboshed the thing. So much for its Sweeps week zinger.

"I and senior management agree with the American public that this was an ill-considered project," Rupert Murdoch, News Corp. chairman said in an Associated Press report. "We are sorry for any pain that this has caused the families of Ron Goldman and Nicole Brown Simpson."

Books have been pulled out of contract or off shelves when there are questions of accuracy, but it's almost unprecedented, thanks to the First Amendment, to pull a book solely due to objectionable content. Certainly this may be the first time such a high-profile book has been pulled this close to publication. The only book that springs to mind that spawned such widespread vitriol from publishing circles was Brett Easton Ellis's "American Psycho" in 1991.

It's not surprising that Fox's affiliates, many of whom bear the mantle of Conservatism proudly, would protest loudly. How many of its Christian-family- values" audience want to see this sort of content on the tube? As for bookstores, Borders Group, Inc. (NYSE:BGP) one of the nation's largest, said it would donate any profits resulting from the book to charity.

Absolutists on the First Amendment might disagree with the decision to pull the project from public consumption, preferring to let the marketplace decide for itself, but in today's world, that's going to happen anyway. The book is now officially a collectible. And eBay Inc. (NASDAQ:EBAY) is there to make sure there's a market for it.

Ross Levinsohn did something remarkable: that is, made a traditional media company relevant in the midst of the dot-com revolution.

As head of News Corporation (NYSE:NWS)'s Fox Interactive Media division, he was responsible for the purchase of MySpace.

The deal was truck a year-and-a-half ago (although, that is a long time in Internet years). And the price tag was dirt cheap -- $580 million (although, at the time, analysts thought it was too expensive).

Of course, it turned out to be one of the savviest deals in M&A lore. In fact, some say MySpace is worth in excess of $5 billion.

So, what next for Levinsohn? He hasn't said anything yet.

But, of course, he has a golden resume -- and could work anywhere. Or, I'm sure he could raise a ton of money and start his own gig.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.