Lucia Annunziata, a former RAI political programming host and news editor, has been appointed president of RAI, its second president in less than two weeks, it was reported by the HOLLYWOOD REPORTER. Italy's two parliamentary chambers named her the chief executive a day after Paolo Mieli stepped down as RAI president only five days after he was appointed. Mieli claimed political and the technical difficulties spurred his resignation.

Less than a week after Paolo Mieli was appointed president of Italian state broadcaster RAI, the former newspaper editor resigned as head of the network, citing "technical and political" reasons it was reported by the HOLLYWOOD REPORTER. The upheaval has been unfolding amid controversy over prime minister Silvio Berlusconi's supposed sway over RAI when he controls Mediaset, RAI's main private rival. Mieli is said to have accepted the post on the condition that he would be free to choose the appointee to the general director post, currently held by Angostino Sacca.

The businesswires are buzzing that entrepreneur Haim Saban and French broadcaster TF1 will most likely buy Germany's biggest broadcast group, Kirch Media. Saban, who ran Saban Entertainment and Fox Family Worldwide before selling off those assets, was in a bidding war with German publisher Heinrich Bauer who stopped making counteroffers this week. This clears the way for Saban and TF1 to clinch a deal valued at about $2 billion to get a 52.2% stake in Kirch's ProSiebenSat.1 and its vast film rights library.

Twentieth Century Fox and Marvel Enterprises have resolved their differences concerning the syndicated television series MUTANT X. Terms of the settlement were not released but have been amicably resolved according to a Fox statement and both sides are looking forward to expanding the relationship. Fox produced the X-MEN film in 2000, based upon the original comic book characters. A sequel is scheduled for release this year.

Upheavals at RAI have been resolved for the time being with the appointment of Paolo Mieli, head of publisher Rizzoli-Corriere della Sera, as president of Italy's pubcaster, along with four new board members, according to VARIETY. Mieli, a journalist and author of books tracing the history of Italy's leftist politics, replaces Antonio Baldassarre. Baldassarre and RAI board member Ettore Albertoni submitted their resignations in response to government pressure on February 26, 2003.

A U.S. investment group led by media entrepreneur Dean Valentine and Europlay Capital Advisors, LLC terminated its official bid to buy 49.9% of The Jim Henson Company, Inc. from EM.TV & Merchandising. The terms of the non-binding letter of intent agreed upon in late December 2002 have been terminated. Former UPN chief Valentine, who also ran Walt Disney Co.'s Touchstone TV and the animation unit, was keen on buying a majority interest in JHC to expand the Henson brand into all areas of family entertainment.

Mattel is consolidating its girls and boys/entertainment business units into one divison renamed Mattel Brands. The new global group includes the Barbie and Hot Wheels mega brands. Chairman/CEO of Mattel Robert Eckert said the move to reduce redundancies was consistent with "our 'one Mattel' approach to doing business," he said. Former boys/entertainment division president Matt Bousquette is promoted to president of Mattel Brands, with the elimination of approximately 5% of the executive level positions, with Adrienne Fontanella exiting as president of the girls division.

The shakeup continues at Italian state broadcaster RAI with its president Antonio Baldassarre stepping down in response to government pressure. Baldassarre and RAI board member Ettore Albertoni submitted their resignations to Italy's lower and upper houses on February 26. Deputy Prime Minister Gianfranco Fini has been spearheading the move to remove RAI's top executives, especially after they decided to move one of RAI's channels, RAI2, to Milan without government approval.

Marvel Enterprises sued Sony Pictures Entertainment on February 25, 2003, in Los Angeles Superior Court over a licensing agreement regarding the SPIDER-MAN theatrical release. The suit was filed through Marvel's subsidiary Marvel Characters, Inc., against SPE and SPE Spider-Man GP Inc. Sony does not comment on pending litigation. Marvel said in a statement, "The complaint is not an attempt to stop production of the SPIDER-MAN sequel slated for May 2004 nor is it an attempt to change or upset any of the merchandising/licensing deals that are in place for the sequel.