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Facebook Expands Into MySpace Territory (NYT)
With an ambitious strategy for expansion, Facebook is getting in MySpace's face. Facebook, based in Palo Alto, is inviting thousands of technology companies and programmers to contribute features to its service. They can even make money from the site's users by doing so, and, at least for now, Facebook will not take a cut. Some of the new features will allow members to recommend and listen to music, insert Amazon book reviews onto their pages, play games and join charity drives, all without leaving the site. Hollywood Reporter: Facebook adds partners, gets facelift.

30 Laid Off By Source Interlink's Enthusiast Media in L.A. (Folio:)
The former Primedia Enthusiast Media, acquired last week by magazine distributor Source Interlink, is shutting down its circulation department in Los Angeles and laying off the 30 employees who work there. The move comes because the company is consolidating circulation efforts in New York City, according to Steve Aster, SVP, consumer marketing, at the company, now renamed Enthusiast Media.

'K-Rock' Returns To New York (NYT)
New York City regained a rock radio station yesterday afternoon when WFNY-FM (92.3) largely abandoned the low-rated all-talk format it adopted in January 2006. The revamped station heralded its new format just after 5 p.m. when it played "All Apologies," by Nirvana. The station, which is owned by CBS Radio, is even dropping its new call letters in favor of those of its predecessor, WXRK, and will once again be billed as K-Rock.

Internet Ad Revenue Charges Ahead (AdAge)
Internet ad revenue grew 35% in 2006, with search, display, classifieds and lead-generation categories continuing to rise at a healthy clip while e-mail, sponsorship and slotting fees remained flat or lost share of the total online ad market. The figures come from the Interactive Advertising Bureau's quarterly Internet Advertising Revenue Report, which included both fourth-quarter and full-year 2006 figures. The IAB said online growth is coming from advertisers using the Web to drive product awareness, purchase intent and brand loyalty.

Barbara Cools Down View Feud (ABCNews.com)
After the explosive debate between Rosie O'Donnell and Elisabeth Hasselbeck that rocked The View Wednesday, Barbara Walters, the show's creator and co-executive producer, declared peace and shot down any speculation that the argument was fabricated for ratings. "Aunt Barbara is back and there will be peace in the kingdom," Walters said in a statement. "It's a hot weekend, so everybody can cool off. And for those who think, let us say, the interesting day, was planned for ratings — that's just absurd. The highest ratings we've had for The View this whole year were in February, when there were no feuds." Page Six: Did Rosie's writer deface Hasselbeck photos in studio?

Life After 'JT Leroy': Laura Albert 'Not Sorry,' Moving On (GalleyCat)
"People always talked about the authenticity of the work," Laura Albert says as a makeup artist fixes her eyes during a photo shoot to create promotional materials for a European TV documentary. "They saw that there was obviously great pain behind it. I was doing it the only way I could. My childhood was hell. I went through a minefield, and I put on camoflauge in order to tell the truth. Billy Corgan got it like that," she says, snapping her fingers. "He understood it immediately. He didn't feel duped."

Advertising's Brave New World (WSJ)
The importance of digital advertising is making for a shifting advertising terrain. Newer firms from outside the traditional ad mainstream dominate the process of making and delivering ads to the Web. "The biggest innovation in the advertising industry during the last 70 years before digital was color TV," says Ajaz Ahmed, chairman and co-founder of independent digital marketing agency AKQA. "The agency of the future will be half a software company and half an entertainment company because that's the new landscape."

Co-Founders Depart 8020 Publishing (Folio:)
8020 Publishing co-founders (and husband and wife) Derek Powazek and Heather Powazek Champ have departed the company over "significant differences of opinion regarding the direction of 8020." In a post on his blog, Powazek says principals at 8020 had determined to come up with a "new story" about the origins of the company, and says, "I wanted to embrace the truth: Tell people how we started, how we grew, and what we were now. It's the story of how a successful, organic community begins. It's the story of how authentic media gets made. And it has the added benefit of being true. Compromise could not be reached."

Karmazin On XM: 'We Suck Less' (NYP)
Sirius Satellite Radio CEO Mel Karmazin sought to allay shareholder concerns at the company's annual meeting yesterday, saying he was just as disappointed as other investors in Sirius' lagging stock price. Compared to rival XM, however, he said: "We suck less." Karmazin acknowledged that he was "real unhappy" with the company's stock price, but he stressed that he has not sold a single share of the roughly $20 million of his own money he has invested.

In Touch Doctors Jolie's 'Veiny' Arm (NYP)
Angelina Jolie has come in for some cover doctoring. The latest issue of In Touch features Jolie on the red carpet at the Cannes Film Festival, showing her usually veiny arm looking silky smooth. Unfortunately for In Touch, a nearly identical photo of Jolie appeared on page 58 of the current issue of People, which clearly showed the veins — in an unretouched photo. Richard Spencer, editor-in-chief of In Touch, was unapologetic. "You're right, we softened those veins. The arm was very, very veiny."

MTV Fans Dial-Challenged (Page Six)
A receptionist for Horizon Health Sales & Development company in Lewisville, Texas, sent a scathing e-mail to MTV last week after receiving hundreds of calls from Sarah Silverman fans. In response to MTV's billboards advertising the June 3 MTV Movie Awards — which feature Silverman on a poster with her phone number printed in huge numerals — the employee told MTV, "I have been answering calls for this number for four days ... many callers have stayed on long enough to express their anger that I am not Sarah Silverman." MTV insists it isn't to blame. "The numbers on the billboards are actually 1-877 (not 1-800)."

Ratings Drop For Idol (AP)
The best days may still be ahead for Jordin Sparks, but the same may not be said for American Idol. The 30.7 million people who watched Sparks win on Wednesday was a sharp drop from the 36.4 million people who saw Taylor Hicks in last year's finale, according to Nielsen Media Research. Industry observers said chances are that the 2006 season will stand as the peak for audience interest.

Pirates 3 Could Set First $200M Holiday Weekend Record (Deadline Hollywood Daily)
Thursday's Pirates Of The Caribbean: At World's End screenings start at 8 pm in what is the widest North American release ever of 4,362 theaters. "Get ready for more records," an expert says. Predictions are for the Disney pic to do between $15 million and $20 million Thursday night alone.

EU Probes Google Grip on Data (FT)
European data protection officials have raised concerns that Google could be contravening European privacy laws by keeping data on internet searches for too long. The Article 29 working party, a group of national officials that advises the European Union on privacy policy, sent a letter to Google last week asking the company to justify its policy of keeping information on individuals' Internet searches for up to two years. The letter questioned whether Google had "fulfilled all the necessary requirements" on data protection. The data kept by Google includes the search term typed in, the address of the internet server and occasionally more personal information contained on "cookies," or identifier programs, on an individual's computer.

At Cannes This Year, the Bankers May Outnumber the Movie Stars (NYT)
Merrill Lynch, Citigroup, Royal Bank of Scotland and JPMorgan Chase, the descendant of Chemical, as well as hedge funds like Atticus Capital and various companies backed by the likes of Providence Equity Partners and the Texas Pacific Group are all at Cannes this year, competing for deals. And then there are hybrid firms like the Los Angeles-based Relativity Media, which says it has done more than $4 billion in "slate" financing, where outside investors put cash into a series of films, rather than one picture. "Five or 10 years ago, there were only a few banks that came to Cannes. Now there are 60 to 80 banks there, hustling." NYT: The shushing of boos at Cannes.

VIDEO: Is The New York Times For Sale (mediabistro.com)
Is the New York Times Co. on the block? In an exclusive video, BusinessWeek's Jon Fine and Vanity Fair's Michael Wolff discuss the possibilities of a Gray Lady sale. RELATED VIDEO: Fine and Wolff on Katie. MORE: On Rupe.