IT'S ALL KATHIE LEE'S FAULT

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Let's go to press, flash:"

Dan Dorfman canned by Money. I can believe Danny was naive, believe he may have been used. But I can't believe a man who makes 750 grand and owns one suit is the new Ivan Boesky.

Susan Lyne, among the smartest young editors around, jumps from editing Premiere magazine to a million dollar super-scout job with Disney, looking for books and other sources ripe & right for conversion into good movies.

Kathie Lee launches a new attack on her exec producer, blaming him for all her problems. "Where is Fred Friendly now that Murrow is dead and I need him?" she asks.

Bryant Gumbel will hang 'em up after just one more year of "Today." Turns out all the smart guys in broadcasting were right; the ones who knew he wouldn't last.

Stockholders formally OK'd the Disney-Cap Cities/ABC merger. Loved the photo of the great Tom Murphy up there at the podium with Eisner. They'd just handed Murph a Disney-logoed baseball cap and there he was holding it, not knowing whether to smile or wind his watch.

CNN expands into yet another network, this a 12-hour-a-day business news operation called fn for "financial network."

Frank Biondi is out at Viacom, Helen Gurley Brown is stepping down, and Roger Ailes is leaving CNBC.

Kathie Lee blames her problems on Dorfman. "He had inside information," she says.

ABC plans an all-news 24-hour channel. NBC and Microsoft will do the same. Don't count out CBS, says Michael Jordan of Westinghouse. Fox too? Pyjama makers sing the blues. No one goes to bed anymore.

Fortune mugs Forbes.

Eric Ober out and Andrew Heyward in as CBS News topper. Did the butler do it? Or Connie Chung?

CNBC launching a new midday feature called "Power Lunch."

The Wall Street Journal bestows a decidedly damp kiss on Steve Florio on his elevation to Conde Nast CEO. Steve should have it framed and illuminated.

Kathie Lee announces her problems can all be laid at the feet of Connie Chung. "Always jealous of my success," says Kathie Lee.

Greg Coleman, publisher of U.S. Reader's Digest, promoted, adding new responsibilities. Just over five years ago Greg was on the beach when Memories mag folded.

Mussolini's granddaughter Rachele, 21, may run for title of "Miss Italy."

Geraldo is shocked! SHOCKED! to learn his own daytime talk show features freaks and the dysfunctional and in fact, makes him ill.

Other daytime nutcase shows are canceled. Montel Williams goes prime time playing Gabe Kaplan.

The Postal Service will issue a James Dean stamp. First Elvis, then MM, now Jimmy. When do they get around to Ned Sparks?

Calvin Klein reportedly signs Joey Heatherton for a fragrance campaign.

Kathie Lee demands a recount: "I was up for that gig!"

During the Great Blizzard two weeks ago, New York radio station WINS was charging cultural institutions such as museums $350 per announcement of closure.

Kathie blames WINS for her troubles. "We're not on WINS, Kathie Lee," says Reeg. "Mind your own business," responds Kathie Lee. But sweetly.

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