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Hedge Funds Bet on Icahn in Yahoo Fight (NYP)
Yahoo CEO Jerry Yang is about to learn dealmaking's golden rule: at a certain price, everyone's a seller. Only a few hours after Carl Icahn said Yahoo's board "acted irrationally" by rejecting Microsoft's $47.5 billion offer, hedge fund Paulson & Co., which recently acquired about 50 million Yahoo shares, went public with its support of the billionaire activist investor's dissident director slate. NYP: Yahoo seeking an open alliance with Google. NYP: Yahoo and WPP plan a Web ad alliance. Marketwatch: Yahoo says Icahn's got it wrong, saying it kept an "open mind" and praising the board as the "best and most qualified group."

CNet's Allure for CBS: Both Are Laggards (NYT/Bits)
Saul Hansell: Every Internet and media company has looked closely at CNet. They are intrigued because it is a leader in its category of tech news and reviews, with some good technology and brands. But it is growing slowly, and its cost base is so high that its profit margins are meager. So what is different for CBS? For one, CBS is also a company with well-known brands and sluggish growth. Folio:: Given CNET's recent financial struggles and its battle with Jana Partners over control of its board, the deal makes a lot of sense, DeSilva + Phillips partner Jeffrey Dearth said. "This represents a good outcome for CNET and, if the post-acquisition integration is successful, CBS may have picked up a real bargain." NYP: The purchase promises to transform CBS, previously an also-ran online, into one of the Top 10 biggest players on the Web in terms of traffic, with upwards of 54 million unique users per month in the US and over 200 million eyeballs around the world. LAT: "It's an interesting move, but not a revolutionary one," Forrester Research analyst Sarah Rotman Epps said. "It's a very logical and efficient way for CBS to extend its advertising network." Forbes: CBS chief Les Moonves estimates the new CBS Interactive will contribute $1 billion to group annual revenues by 2010. BusinessWeek: "I'm not convinced that's a slam dunk, but, hell, at least every now and again a big broadcast network can surprise you," writes Jon Fine.

Sources: Downie Out as WaPo Editor by January (Radar)
As Washington Post staffers reached the deadline to decide whether they would take buyouts, newsroom sources confirmed that executive editor Leonard Downie will retire no later than inauguration day, 2009. An announcement could come as early as today. Former International Herald Tribune editor David Ignatius and Post managing editor Phil Bennett are the leading inside candidates to succeed Downie. E&P: The "death watch," as it were, for executive editor Leonard Downie Jr. of The Washington Post appears to be among the biggest spectator blog sports for several news Web sites. FishbowlDC: More take buyouts from the Post.

Senate Votes to Block FCC's Cross-Ownership Rule Change (B&C)
The Senate Thursday night voted, without debate, to invalidate the Federal Communications Commission's Dec. 18 decision to loosen the newspaper-broadcast cross-ownership rule. Sen. Byron Dorgan (D-N.D.) has been pushing hard for the resolution of disapproval, arguing that media consolidation has already led to a lack of localism and diveristy, so any more loosening of rules is uncalled for.

Fox Plans to Run Fewer Ads in 2 New Prime-Time Dramas (NYT)
The Fox network announced a new approach Thursday to keep viewers hooked on shows: give them fewer commercials. Peter Liguori, president of Fox Entertainment, announced a plan that would allow two of its new dramas, Fringe and Dollhouse, to run as many as 50 minutes of story each episode. Standard dramas now average program lengths of 42 to 44 minutes. WaPo: So viewer-unfriendly has network TV become these days, Thursday's announcement qualifies as pretty big stuff. Fox suits thought so — they even gave it a name: Remote-Free TV.

Herald Writer Explains, Apologizes for Article About Patriots Walk-Through (Boston Herald)
John Tomase: First and foremost, this is about a writer breaking one of the cardinal rules of journalism. I failed to keep challenging what I had been told. I had repeatedly heard that this walkthrough had been taped, and from people I trusted. Eventually I accepted it as fact and stopped questioning the assertion.

New York Times Takes Top Honors at EPpy Awards (E&P)
The New York Times emerged the biggest winner in this year's competition, scoring three awards: Best Business Blog, for NYTimes.com/DealBook, as well as Best News Web site and Best Overall Newspaper-Affiliated Web Site for NYTimes.com. USA Today took home two wins, for Best Entertainment Blog and Best Sports Web Site. Winners in other categories included The Denver Post, The Associated Press, and CNN.com.

Publisher Joe Landry Flees BlackBook for Out and the Advocate (NYO)
It's quitting time at Blackbook. On the heels of the major departures of its managing editor and photo director, Blackbook has now lost its publisher, Joe Landry. Landry is returning to his old stomping grounds and will become group publisher of both Out and The Advocate, replacing Jay Adams, who was fired earlier this week.

NHL Star Starts His Internship at Vogue (WWD)
Sean Avery started his internship at Vogue on Monday, and already staffers at Condé Nast Publications Inc. are buzzing about the New York Rangers star's presence at 4 Times Square. Observers say he's involved in all sections of the magazine, including features and accessories, and attends edit meetings. And while Avery pulled down $2 million last year with the Rangers, he's earning minimum wage for his time at Vogue.

Time Inc. Relaunches Health.com as Portal (FishbowlNY)
Time Inc. is re-launching a new health and well-being Web site in conjunction with their newly redesigned Health. Health.com will launch on May 19 and aims to help users "take control of their own health experiences," beyond, we have to assume, the usual self-medicating with whiskey and chocolate.

IAC to Buy Lexico to Boost Its Ask.com (WSJ)
As part of its efforts to bolster its Ask.com search engine, IAC/InterActiveCorp plans to buy Lexico Publishing Group LLC, the owner of Dictionary.com, Thesaurus.com, and Reference.com. IAC didn't disclose the price, although the deal comes just months after Answers Corp., owner of reference Web site Answers.com, dropped plans to buy Lexico for $100 million after running into difficulty securing financing.

Life of Reilly (Forbes)
It's great to be Kevin Reilly. At last year's television industry upfront, the then NBC entertainment chief faced a sea of marketers pitching a fourth-place network in duress. Despite critical accolades, his programming had failed to hook viewers. He was unceremoniously dumped soon after. Today he's back. As the current Fox entertainment chief, he has a new title to tout: leader of America's most-watched network.

It's Time for the Press to Cover McCain Again (Boston Phoenix)
Adam Reilly: The press is finally switching into general-election mode. This means it's time to start covering McCain again — not by trotting out the usual war-hero-turned-blunt-maverick narrative, but by taking a hard look at the strengths and weaknesses he'd bring to the presidency.

Taking Ads to a Whole Nuttier Level (BusinessWeek)
Jon Fine: Seattle ad agency Wexley School For Girls' is best understood as an exemplar of the new wave of ad agencies, the sensibilities and rise of which are inextricably bound up with certain corners of the Web. They're developing a rep for advertising that extends far beyond the traditional confines of print or TV or Web ads.

CBS' Anthony Mason Is a Master Storyteller (Marketwatch)
Jon Friedman: CBS News correspondent Anthony Mason is old school all the way, excelling in the vanishing art of storytelling. It's fitting that Mason, 51, carries on that tradition at CBS, following in the footsteps of such legendary storytellers as Edward R. Murrow and Charles Kuralt. But this type of reporting is growing increasingly scarce in an era of cutbacks, buyouts, and layoffs and when gossip is king in journalism.