On this second day of the New Era of Cautious Optimism ushered in by Friday's "informal" bargaining session between Writers Guild negotiators and studio CEOs—when WGA West president Patric Verrone's repeated striking of Disney's Bob Iger with a foam EncounterBat™ led to a critical, tearful breakthrough on the matter of streaming video payments— the LAT reports that the Guild's West Coast board has "reacted favorably to the outlines of a pending agreement" between the warring factions. Still, they refuse to uncork the Moët until everything they've fought for is actually in contract form and put to a vote that could—dare we say it? yes, we will dare—happen as early as this weekend:

In case you were too consumed with your Super Bowl preparations to scroll through the scores of "THE STRIKE IS OVER!!!" e-mails filling up your BlackBerry, various reports touting "progress" fueled by a breakthrough in Friday's informal deal-chat surfaced over the weekend, filling Hollywood with the kind of cautious optimism the beaten-down residents of a crippled company town haven't allowed themselves to feel since the AMPTP's Nick Counter stormed away from negotiations after claiming that someone on the WGA negotiating team had given him "the stink-eye" back in early December, ushering in weeks of unrelenting gloom.

With the giant, overturned hourglass in the courtyard of the Hollywood & Highland complex trickling sand until its final grains pass through it at the strike of midnight on February 24, producers of the Oscars ceremony are continuing to stick to their pledge that come hell or high water, audiences looking for four-plus mind-numbing hours of premium trophy distribution won't walk away disappointed:

Recognizing that striking writers could really use a positive story to lift their flagging spirits after enduring so many disheartening months of marching in circles and dodging the occasional vehicular manslaughter attempt by lead-footed studio employees, this week's LAT Scriptland column relates the inspiring tale of improbably named WGA member Billy Frolick, who, by accepting "a mysterious offer" to script a Ukranian animation project, suddenly found himself transported to a kind of Bizarro Hollywood where scribes were not only not regarded with typical scorn, but treated as royalty. We join our narrative in progress, as Frolick alights in Kiev to meet his new collaborators:

When the WGA and AMPTP finally announce a new deal, we're really going to miss all those What Striking Writers Are Doing To With Their Free Time pieces that have kept us so entertained during the labor war. In today's LAT, some screenwriters chat about how they've temporarily thrown off the lucrative, artistically stifling shackles of Final Draft and embraced the creative freedom offered by the novel; however, not every agent is thrilled about the prospect of having to plow through idling Hollywood scribes' boredom-inspired literary experiments: "'Oftentimes, you shudder when a screenwriter sends you a novel, because they tend to be strong with dialogue but crappy with context, and novels are all about creating the proper context for the story,' said [book agent Mary] Evans, whose clients include Smith and Michael Chabon. 'Screenwriters are attracted to novel writing because they can let their freak flag fly and just write what they want, but the truly talented novelist-slash-screenwriter is very rare." [LAT; Image via marvunapp.com ]

Lionsgate, the plucky indie studio who mined the untold box office potential of film franchises featuring a creepy marionette on a tricycle and an equally creepy actor in grandma drag, has forged its own side deal with the WGA:

· According to "an industry study conducted by informed sources" which Var was allowed to view on a "confidential basis" (we'll let you concoct your own theories about a trenchcoat-clad Nick Counter giving a sneak preview of the figures in a dark corner of the Beverly Center parking lot), the cost of the writers strike could reach $3 billion if it drags on for 60 to 90 more days. Also, in case you haven't heard: the national economy is headed down the shitter. [Variety]
· While NBC isn't canceling any of its current pilot scripts (unlike recent project-droppers CBS, Fox, and The CW), Jeff Zucker says that going forward, the company will cut back on traditional pilot development to focus its resources on ordering episodes of whatever Colombian telenovela or Dutch game-show Peacock programming-importation expert Ben Silverman thinks he can rush onto his primetime schedule without too much expensive tinkering. [Variety]
[After the jump: ast night's Idol numbers; CEOs and writers chatting; a Buffy reunion]

On Tuesday's Colbert Report, Stephen Colbert offered what was perhaps the most moving pro-WGA moment we've seen in weeks, leading Malcolm Gladwell and the Harlem Gospel Choir in a lively rendition of the spiritual "Go Down Moses" as images of his beloved, absent colleagues scrolled across the screen; cue up the above clip and prepare to be stirred in a way you haven't been since Conan O'Brien gave us that first, utterly thrilling glimpse of his strike beard.

How about some quick, late-afternoon strike news to break up the unpleasantness of today's dominant, thoroughly depressing story? OK then! In an e-mail blast to members, WGA West/East presidents Patric Verrone and Michael Winship say that they're happy to join in informal talks with the AMPTP, and that they've decided to pull their reality and animation proposals off the table to help get a deal done. Also, the Guild won't be picketing the Grammys, one awards show we really wouldn't have missed if it gave its life for the Cause: "In order to make absolutely clear our commitment to bringing a speedy conclusion to negotiations, we have decided to withdraw our proposals on reality and animation. Our organizing efforts to achieve Guild representation in these genres for writers will continue. You will hear more about this in the next two weeks." The full message follows after the jump:

· This should make up for Hannibal: Oliver Stone's next project is a G.W. biopic titled simply, Bush. (Why is the frat boy in us suddenly compelled to add the words National Lampoon's to the beginning of that?) To play the Greatest American President Currently Holding Office—Josh Brolin, who's looking forward to taking on a role in which he gets to turn the figurative pitbulls on everyone else for a change. [Variety]
· Just days after the DGA reached a quick and dirty deal with AMPTP, the WGA announces that they have ended the negotiation stalemate, and that "informal" talks have been set, just as soon as the two sides can settle on which Koo Koo Roo sides would be acceptable for the catering. [Variety]
· DreamWorks Animation entered into a multibillion-dollar deal to build a theme park in Dubai. Michael Jackson must be rolling in his oxygen chamber for having left the country so tantalizingly close to the grand opening of Donkey and Puss n' Boots's Wacky Wave Pool. [Variety]

· The DGA, as you undoubtedly heard just moments after puffs of white smoke were belched skyward from the chimney of AMPTP headquarters, reached a deal with the studios yesterday. While anxious WGA members are picking over the proposed contract to see if any writer-screwing provisions have been hidden in the fine print, a strike-weary industry reacts: "One thing that is very clear is that with all the bad blood between the WGA and studios, the writers can strike until the end of time and they will not do better than the directors did. It is time to stop this," said a "veteran agent" obviously eager to start earning commissions again. Check out the full story to read quotes carefully chosen to make the WGA look totally unreasonable if they don't fall hopelessly in love with the terms offered the directors! [Variety]
[After the jump: more deal reactions! Zac Efron hearts Orson Welles! Primetime TV may soon offer nothing but celebrity circus shows!]

It's here! It's finally here! According to Var, the Directors Guild has reached the much-rumored deal with the AMPTP that's had Hollywood aching with uneasy anticipation since the formal start of negotiations over the weekend. No details are in yet; stay tuned to see if the terms offer hope that a similar agreement can be struck with the WGA, or whether the proposed contract is so disappointing that it will just drive a fresh wedge between striking writers and the studios, plunging the town even deeper into gut-wrenching despair.

· Warner Brothers allows its options on the Justice League cast to lapse, putting the project on "indefinite hold," though the studio has assured its roster of mostly no-names that it still would eventually like to see what they all look like in their cute superhero costumes. [Variety]
· Like Monday's American Idol episode, last night's installment was down in the ratings from the show's 2007 season; still, the 30 million people who tuned in were more than enough to help Fox completely eviscerate its competition. [THR]
[After the jump: Hayden is a cheerleader 4ever, the DGA-deal waiting game, and WB layoffs begin!]

A press release from the WGA today demonstrated how the Guild has the potential to be a merciful awards-show-waiver-granting Hollywood entity, announcing that they have reached a pact with the NAACP allowing the Image Awards to proceed as planned:

A rumor posted on unitedhollywood.com, and substantiated by an article in Variety, suggests the DGA is on the verge of having reached a deal with the AMPTP, if not having done so already. What this means for the WGA isn't entirely clear: United Hollywood cautions that "everyone stay calm," and give WGA negotiators an opportunity to "analyze the terms of that deal and see if they're acceptable to us as a guild or not," but picketing writers have already begun to express optimism that it will provide an acceptable template for their own. Certainly, it should hearten anyone to know that the same union that reps such highly opinionated and demanding artists as Michael Bay was able to reach a swift and workable solution, without the Transformers director even once leaning over the bargaining table to suggest to Nick Counter through a megaphone that his offer was, "BEEEEEEEP...a FUCKING JOKE, OLD MAN."

According to the AP, The Weinstein Company says it's about to reach the same kind of interim deal with the WGA that United Artists signed back on Monday, with the papers necessary to get back to work with union writers possibly signed by the end of the day. (Let the Official Side Deal PressReleaseWatch begin! Exciting, we know.) Once the contract is finalized, Weinstein can expect a scriptalanche like one that is reportedly burying Tom Cruise; TWC employees will undoubtedly be rejoicing that their boss will have a fresh supply of three-hole-punched projectiles to launch at their heads at the slightest provocation, as they're probably a little tired of dodging the same stale batch of screenplays he's had to use since the start of the strike.

· With plenty of time on their hands these days to evaluate their relationships, studios have start dropping (and/or not renewing) first-look deals with partners with whom they've fallen out of love. Not even America's Sweetheart Reese Witherspoon (and her Type A shingle) has been immune from this recent caprice, though New Line was more than happy to climb into bed with her after a recent dumping. [Variety]
· A belt-tightening ICM is suspending several agents, who still will receive strike pay and benefits until the end of the labor war, and temporarily cutting some salaries. The silver lining: they're not laying off any assistants. (Yet.) [THR]

How will high-powered members of Viacom's corporate family like Sumner Redstone and Les Moonves be spending some of the days freed up by not having to deal with the boring details of a contract negotiation with the WGA? By heading off for some much-needed head-clearing time early next week at Boulders Resort and Golden Door Spa, an executive-pampering Xanadu located in picturesque, improbably named Carefree, Arizona. And when they finally return from their well-earned post-holiday break, they'll hardly even remember why all those rude people in red T-shirts are walking in circles in front of their studios. [United Hollywood]

According to the helpful countdown clock on their website, the next People's Choice Awards is but 364 days and some-odd hours away, which hopefully will be enough time for them to find their balls again after being castrated behind the awards barn as a sacrifice to the writers strike gods. Still, the ceremony we've not entirely reverentially referred to in the past as Oscar's Chain-Smoking, Lupus-Afflicted Aunt with an Internet Gambling Problem limped its way into American living rooms in an odd, greatly compromised CBS telecast last night, bereft of a studio audience, live star appearances, and awkward acceptance speeches from recently dumped actresses wondering how they can be all of America's favorite if they can't even be Justin Timberlake's.

Safely on the other side of the holiday season, when pink-slips tucked into stockings hanging above smoldering Yule logs would have put a further damper on an already gloomy Christmas in Hollywood (not to mention the SHITCAN CLAUS VISITS WARNER STAFFERS headlines in the trades that would've accompanied such a badly timed move), Warner Bros. has announced to employees that it will kick off the new year with a cheery wave of strike-related layoffs. In a legally mandated, but still heartfelt, letter to studio workers, a WB VP said that an unspecified number of cutbacks—the good news: they may be temporary! The bad news: Did we mention that "cutbacks" means we're firing a bunch of people?— will go into effect by January 18th, according to Variety: