Domestic doyenne Martha Stewart and legendary investor Warren Buffet are on stage at a big AOL meeting. "People are going fucking nuts," a tipster writes. Why are the business celebrities at AOL? To make children's programming, naturally.

• BusinessWeek's Jon Fine reports that New York owner Bruce Wasserstein may be in the running to break out a dollar bill and buy BusinessWeek. [BW]
• ESPN banned New York Post employees from appearing on the network yesterday after the paper ran (blurry) pics of a nude Erin Andrews. [AP]
• Will will happen with McKinsey consultants now infiltrating Condé Nast? How should you behave if you work there? Some answers and tips. [NYM, Gawker]
• Martha Stewart loves Twitter, doesn't particularly care for Facebook. [TDB]
• Kate Major, the Jon Gosselin-loving, publicity-seeking reporter for publicity-seeking Star magazine, has resigned from the junky tabloid. [Star]
• Ad revenue fell precipitously, but the New York Times Co. reported second-quarter profits of $39.1 million, up from $21.1 million a year ago. [NYT]
• Related: Is the Times Co. planning to hang on to the Boston Globe? [E&P]
• America's most trusted newscaster? That would be Jon Stewart. [Time]

• The urban/music magazine Vibe is shutting down. [Daily Finance]
• Media coverage of Michael Jackson's death is now "receding." Not that there was any other place for it to go but down: A report finds that 93% of the coverage on cable late last week was Jackson-related. [AP, Journalism.org]
• Or maybe not. Katie Couric anchors a big Jacko special on CBS tonight. [NYO]
• Fired Fox News columnist Roger Friedman has filed a wrongful termination lawsuit in New York State Supreme Court against Fox News, News Corp, 20th Century Fox and Rupert Murdoch. He'd like $5.2 million, please. [HuffPo]

Any doubts about Michael Jackson's megastardom should have ended after news of the singer's death tripped up Google and crashed AOL Instant Messenger, Wikipedia, TMZ and, of course, Twitter. A survey of the epic traffic:

Tim Armstrong, AOL CEO, just bought a company from... Tim Armstrong, investor. The official line is that the deal is on the up and up, since the consummate salesman won't be taking any profits off his stake. Rich.

• The late night battle rages on: After losing ground to Letterman, Conan bounced back last night, and had a pretty solid first week overall. [THR, NYT]
• Boston-based Intercontinental Real Estate Corp. confirms that it has been talks with the New York Times Co. to purchase the Boston Globe. [BH]
• Stephen Colbert's decision to broadcast from Iraq worked out nicely: Ratings for the Comedy Central show have been up 25 percent this week. [NYT]
• Joy Behar is launching a new talk show on HLN. The best part about it: She'll be bumping blowhard Lou Dobbs from his 9pm slot on the network. [NYT]
• TV, print and online ad spending fell 14 percent in the first quarter. [WSJ]
• Hope you're a Marley & Me fan. HarperCollins is cemented a deal to publish 13 children's books about the world's most famous Labrador. Yes, 13. [PW]

Gregory Coleman was hired in February to run AOL advertising network Platform A. Two weeks later, the CEO who hired him was out; two months after that, Coleman's own departure was announced. But at least AOL made it worth his while.

The surrender of AOL was a humiliating enough denouement for Time Warner, the old-line media conglomerate once imagined invincible. But there's talk it could get worse. What if Time Warner ceased to exist as an independent concern?

The 21st century dawned with news that two media megaliths, AOL and Time Warner, were to merge. Critics howled that the vast tentacles of a combined AOL-TW would subsume us all. Today, Time Warner confirmed it's spinning off AOL, ending a business saga that defined whatever you're calling the 2000s.

As expected, Time Warner CEO Jeff Bewkes announced this morning that it plans to spin off AOL, a move that puts the final nail in the coffin of one of the most disastrous mergers in history. But if the mechanics of the deal strike you a little too complicated, The Times Bits blog has outlined it in easy-to-understand celebrity tabloid terms:

• Rumor has it Richard Branson may be interested in buying Playboy. [ChiTrib]
• Two Boston Globe unions have agreed to concessions with the NYT Co. [E&P]
• Why did the Times pick Mexican billionaire Carlos Slim to invest in the paper instead of David Geffen? It seems publisher Arthur Sulzberger Jr. was "worried about Geffen's ambition to take over the company." [AllThingsD]
• Mayor Bloomberg plans to introduce legislation in Albany to extend the city's popular—but broke—film/TV tax credit program. [THR]
• Tom McGeveran has been named interim editor of the New York Observer. He'll take over for Peter Kaplan, whose last day will be this Friday. [NYO]

Dear Ryan:

As I head to NBC to run its Bay Area site, I'm leaving you one Silicon Valley gossip blog, used but in good condition. A few thoughts on how to keep it that way.

Today in his Huffington Post column, Alec Baldwin delivered an important lecture about how to practice good, proper journalism. First lesson: Don't mess with Alec Baldwin.

An AOL tipster tells us incoming CEO Tim Armstrong, the Google sales veteran, wants to buy Twitter, the hot message-broadcasting startup. One problem: He hasn't even started at AOL yet.

Is AOL email now retro cool? One longtime AOL user sure hopes so!

• Jon Stewart's showdown with Jim Cramer is getting mixed reviews, mainly because both deviated from their typical personas: the normally brash Cramer was a wimp and Stewart wasn't funny. It "felt like a Senate subcommittee hearing," writes Alessandra Stanley. [NYT, Salon, Atlantic, ABC]
• TMZ and Extra have extended their coverage to the financial services industry! Isn't it ironic that TMZ has exposed more corporate misbehavior over the past few months than CNBC has? Because it sort of has. [NYT]
• Google sales chief Tim Armstrong is the new chairman and CEO of AOL. [WSJ]
• Jim Kelly is stepping down as managing editor of Time Inc. [NYP]
• Fox has dumped Peter Liguori in favor of Fox Searchlight's Peter Rice. [THR]
• More changes are ahead at the Peter Brant-owned Interview. [WWD]
• Mel Karmazin says Sirius's poor performance last quarter was due to "doom and gloom" rumors suggesting the company would go bankrupt. [WSJ]
• Jimmy Fallon finished his first week with solid ratings, beating out the numbers that Conan O'Brien typically generated. Depressing, huh? [Variety]

At last, AOL has done something right: The Time Warner Internet unit has hired Google's Tim Armstrong as its new CEO, booting the laughably incompetent duo of CEO Randy Falco and COO Ron Grant.

What's Twitter good for? Knowing that your life of quiet desperation is shared by the rich, powerful, or merely well-read, for starters. Steve Case, Sasha Frere-Jones, and Rob Corddry deserve twitty pity:

AOL, the failing Time Warner Internet unit, is laying off another 700 employees via emails alerting them to an "important meeting." Even the pink-slipping process is predictable now. And former CEO Steve Case? He's sad.

The Valley's biggest players are all racing to be the center of your online life, collecting your photos, blog posts, Twitter messages, and comments into one stream — and then dosing it with real-time ads.