Hearst, the legendary newspaper giant, is looking to purchase Paramount Communications for $3.5 Billion USD. Currently, Hearst owns King Features Syndicate and the proposed purchase could bring characters like Betty Boop and Popeye back into the Paramount fold after close to five decades apart. However, regulators from both parties want Hearst to sell its stakes in ESPN, A&E and Lifetime before the deal can close. Currently, Hearst co-owns the aforementioned networks with ABC. Another condition in the deal would call for Paramount to sell its 50% share of the USA Network Group, which Paramount co-owns with MCA. The boards of directors of both companies say it's too early to vote on the proposed acquisition and that further kinks would need to be ironed out. - The Wall Street Journal Trans World Entertainment, parent company of Suncoast, Sam Goody and For Your Entertainment (FYE) hopes to add struggling Sacramento-based chain Tower Records to its portfolio. - Rolling Stone AOL withdraws bid for USA Network Group. Comcast and GE are still at the negotiating table. - The New York Times.