Michael M. Thomas — who left the New York Observer after 22 years with a declaration that owner Jared Kushner "stands pretty much squarely on the side of those whom I consider the bad guys" — reflects on the paper.

The engagement gifts are rolling in for Observer publisher/real estate heir Jared Kushner and his newly-converted bride-to-be, Ivanka Trump. One of gifts the future Mrs. Kushner has received recently, per Urbanite: a "Swarovski crystal-studded mezuzah with leopard spots." If that's what you were thinking of getting her, too, please cross it off your list. [Urbanite]

Awww, gross again. After getting the simply nauseating news that real estate heirs Ivanka Trump and Jared Kushner are getting hitched, now we have to hear even more about it. The future Mrs. Kushner went and blabbed to Daily Intel.

Jared Kushner learns quick. And he's going to blend into the Trump family just fine. WWD reports today that the engagement ring he gave Ivanka was from Ivanka's own collection, a 5.22 cushion cut diamond that's "proprietary" to Ivanka Trump Fine Jewelry™. Ivanka will now serve as a living, breathing ad for her engagement ring line (as well as benefit from the press attention that follows). And Jared—hopefully!—managed to knock a few bucks off the price thanks to this most personal connection. Most importantly:

Awww, gross! Heiress and former Apprentice helper Ivanka Trump, 27, has gotten engaged to newspaper-destroying millionaire playboy Jared Kushner, 28. She announced it over Twitter, because that's what people do these days. But what will their parents think??

Ivanka Trump and Jared Kushner are engaged. Jared proposed last night, news that Ivanka sent out via Twitter this morning (not that it's stopping Us Weekly for taking credit for the "exclusive.") Now for the big question: Will the wedding be at the Trump International Hotel & Tower in NYC, the one in Vegas, the one in Chicago, the one that might open one day in Soho, or perhaps at one of Donald's golf resorts? At least you can rule out the Trump Taj in Atlantic City! [Gawker]

• The Harry Potter frenzy kicked off last night when the latest installment debuted at midnight last night and raked in $22.2 million in the process. [THR]
• Jared Kushner's struggling Observer is still hunting for a new editor. [DF]
• Time Inc. has "assembled a high-level SWAT team" to revamp Fortune. [NYP]
• The most successful magazine at the moment? Fitness. Obviously! [Folio]
• Ukraine's Culture Ministry has banned Brüno because "it's immoral." [THR]
• A hacker accessed the computers of several Twitter employees, made off with a big bunch of documents, and is now leaking the info online. Technology! [TC]
• Is NBC's wacky, new terrorist-hunting reality show going to put war correspondents in danger's way? Guess we'll find out shortly, right? [NYO]

In your level-headed Wednesday media column: Jared Kushner congratulates his busy employees, the New York Times Co. explains how broke it is, a great idea for J-schools, and Fitness magazine finds success in fat America, somehow.

• Looking to buy a struggling business magazine that's losing advertisers right and left? You're in luck. McGraw-Hill has put BusinessWeek up for sale. [BN]
• The hottest interview in TV-land right now? Bernie Madoff, naturally. [B&C]
• Not such great news for the television biz: Most networks are experiencing a double-digit drop in summer ratings compared to last year. [USAT]
• MySpace is no longer a "place for friends." (That's what Facebook is for.) It's a Web site "for accessing entertainment and related information." [WSJ]
• Former Observer reporter Gabriel Sherman takes a look at Observer owner Jared Kushner in this week's issue of New York. Among other things, Kushner says he found the paper "unbearable" until he bought it. [NYM]
• Brüno's $30 million gross made it No. 1 at the box office this weekend. [THR]

Jared Kushner, boy wonder real estate scion and New York Observer owner: watch, as the young man fumbles his newspaper business and insults his staff! Marvel at his father's family-destroying schemes! And, his secret for attracting Ivanka Trump, below!

Was former Village Voice and New York Press editor David Blum—whose tour through New York's dying weeklies has, fairly or unfairly, been regarded as a kiss of death—behind the bright idea of firing 10 New York Observer staffers?

• Advertisers are asking (demanding) that TV broadcasters cut prices by as much as 15 percent. The networks? They're not so happy about it. [LAT]
• Jared Kushner's Observer is launching a supplement for "stroller-wheeling New York City moms." The glossy is set to debut in September and "will address family-friendly topics for the society set and celebrity parents." [WWD]
• Rupert Murdoch's News Corp. has sold off The Weekly Standard magazine to Denver-based media mogul (and fellow conservative) Phil Anschutz. [AP]
• ABC is changing up its executive management structure. [THR]
• Conan O'Brien was victorious in his second week up against Letterman. [NYT]
• Speaking of Letterman, Olive Garden—the "Italian" chain restaurant that you should never eat at even if you're dying of starvation—is canceling all of its spots on Letterman's show in solidarity with Sarah Palin. [Politico]

How is shopping newsletter Very Short List doing on the second day under the New York Observer's ownership? Poorly enough to motivate mogul wannabe Jared Kushner to hire some dedicated staff, perhaps.

• The curse of Gisele: Both Vanity Fair and Harper's Bazaar put supermodel Gisele Bundchen on the covers of their mags this year, and both have turned out to be their worst-selling issues thus far in 2009. [NYO]
• Can Forbes survive the downturn? The Forbes family thinks so. [NYT]
• Jared Kushner's New York Observer has acquired Very Short List, the struggling email newsletter owned by Barry Diller's IAC. [Gawker, NYP]
• The Huffington Post has a new CEO, ex-Ziff-Davis CEO Eric Hippeau. [PC]
• BusinessWeek is the latest mag to test a paid online subscriptions. [MW]
• Barack Obama's half-brother landed a book deal with Simon & Schuster. [AP]
• The Hangover and Up were the top-grossing films this past weekend. [LAT]
• The Boston Globe is up for sale—and a handful of people appear to be interested—although just how much they'll pay is anybody's guess. [NYT]
• ABC's Lost is the most watched TV show on the Internet. [Variety]

The first edition of email newsletter Very Short List is out for the first time under the control of New York Observer publisher Jared Kushner. What advertiser do you think he lined up?

Our earlier post on Very Short List being sold is now confirmed via official email.

A source writes in: ink on the long-rumored deal selling IAC property Very Short List to Jared Kushner and The New York Observer's dry. VSLers have been fired, and the property's clumsily fallen into the Observer's hands, now. Update: confirmed.

Barry Diller's effort to pawn off Very Short List, his failed shopping newsletter for the rich, is turning into a classic New York media folly — a big drama over a puny digital property.

A bloodbath at Jared Kushner's New York Observer is unfolding this afternoon. Gawker has the details. [Gawker]

Longtime New York Observer editor-in-chief Peter Kaplan's 15-year tenure ended yesterday; last night, Jesse Oxfeld compiled a great, 2,000 word piece of quotes and anecdotes on Kaplan, which Daily Intel ran. It is, as one commenter noted, perfect. My three favorite quotes, after the jump: