***Former Yahoo! and Warner Bros. Entertainment CEO Terry Semel plans to make a run at acquiring private-equity investor Teddy Forstmann's IMG marketing and talent agency.
According to sevral sources with direct knowledge of the situation, Semel has been meeting with private-equity firms and the sovereign wealth funds of the United Arab Emirates, and has raised enough money to do a significant transaction.
TATUM O'NEAL ARRESTED ON DRUG CHARGES;
ACTRESS ACCUSED OF POSSESSING CRACK COCAINE:
Police arrested Academy Award-winning actress Tatum O'Neal from her luxury high-rise apartment on drug charges Sunday night.
O'Neal was arrested around 7:30 p.m. at her Clinton Street home where police said they found bags of cocaine and crack in her possession.
Arrested with her was 33-year-old Alan Garcia, who is believed to be the possible dealer.
*Published reports said the 44-year-old actress initially told police she was doing research for an upcoming role, and that she pleaded to be let off the hook when the drugs were discovered.
***A group of prominent political activists gathered last night at Hamburger Hamlet on the Sunset Strip for the quarterly "Politically Incorrect" dinner moderated by media expert and author, Michael Levine.
Guests included feminist attorney Gloria Allred, news radio talk show host John Phillips, father rights advocate Glenn Sacks, L.A. councilman Dennis Zine, broadcaster Rob Nelson, producer and manager Mike Flint, and internet entrepreneur Claude Dauman.
***It looks like George Clooney's ex-GF isn't wasting much time moving on from her year-plus-long relationship with Georgie boy.
Sarah Larson was red-hot on the town, "dancing seductively" as Vegas Confidential reports, for an ex-boyfriend (not George) at grand opening of Palms Place Hotel and Spa Saturday night.
It was the first time she'd been out in public since splitting from Clooney.
***BE AN LBN CORRESPONDENT - send your celeb sightings to LBNElert@TimeWire.net.
ROCK PIONEER BO DIDDLEY DIES AT AGE 79:
Bo Diddley, a founding father of rock 'n' roll whose distinctive "shave and a haircut, two bits" rhythm and innovative guitar effects inspired legions of other musicians, died Monday after months of ill health.
He was 79.
***Markus Dohle's promotion to chief executive of Random House, the world's largest consumer book publisher, is just one part of a broader cultural makeover at Bertelsmann.
***Is the electronic book approaching the tipping point? That topic both energized and unnerved people attending BookExpo America in Los Angeles.
WHO READS THE LBN E-LERT:
Los Angeles Mayor Antonio Villaraigosa along with approximately 295,000 other "influencers" in all 50 of the United States and 23 foreign countries.
LBN-COMMENTARY By ALLISON HOPE WEINER:
M. Night Shyamalan's career illustrates one of the paradoxes of Hollywood:
the industry loves the myth of the auteur -- until faced with the realities of the box office.
SEX AND THE CITY' LEADS WEEKEND BOX OFFICE:
"Sex and the City" and its legion of female fans over the weekend gave Hollywood exactly what it needs to survive an uncertain summer movie season:
an unconventional hit.
The romantic comedy, based on HBO's long-running television series of the same name, unexpectedly overtook the latest "Indiana Jones" movie at the domestic box office, bringing in an estimated $55.7 million since opening with midnight shows on Thursday, according to Warner Brothers., which released the film.
***Unhampered by the adjacent fire on the Universal Studios backlot, the MTV Movie Awards took place on Sunday night.
"Transformers" took best movie honors at the Mike Meyers-hosted event while Johnny Depp won two awards: best comedic performance and best villain.
Tom Cruise presented Adam Sandler with the Generation Award, the show's highest honor.
***Can the environment make for entertaining TV?
Discovery Communications is about to find out with its launch of Planet Green.
***Rob Marshall has signed with CAA.
Marshall, who built his career at ICM, leaves as he is preparing to direct "Nine" for the Weinstein Co.
Daniel Day-Lewis will star with Penelope Cruz, Marion Cotillard, Sophia Loren, Nicole Kidman and Judi Dench in the musical, inspired by the Fellini film "8½," which is scheduled to shoot this fall.
***As of early Sunday, 80,000 people signed up on Facebook as a fan of "Sex and the City," the weekend's unexpected No. 1 film in North America.
Also: A new study from BlogHer and Compass Partners suggests that traditional media are losing female mindshare to the Web.
***Wal-Mart is adding free classified advertising to its Web site, Walmart.com.
Silicon Valley startup Oodle is powering the new service.
The U.S. retail giant now competes with both Craigslist and eBay-owned Kijiji.
Walmart.com attracts 26 million U.S. visitors per month.
LBN READERS GET THE NEWS -
FAST! FAST! FAST!:
French fashion designer Yves Saint-Laurent poses with his models after a Christian Dior collection show in 1959.
Yves Saint Laurent, one the top French designers of the 20th century, died Sunday evening in Paris, a source in the fashion icon's foundation said.
Yesterday, all 294,000 of the LBN E-Lert readers in 11 time zones through the world got the news delivered to them BEFORE......ABC News, USA Today, The Wall Street Journal, The Los Angeles Times, MSNBC, Fox News News, The Washington Post, The Chicago Tribune.
LBN-COMMENTARY By PAUL KRUGMAN: There's no sign this time around of the wage-price spiral that, in the 1970s, turned a temporary shock from higher oil prices into a persistently high rate of inflation.