By Jessica, 9:15 AM on Thu Jul 20 2006, 28 views (Edit, to draft, un-top, Slurp)

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Bad news for the Giant Peach: the Post and Times both report today that Robert De Niro's Tribeca Enterprises will not be buying the Observer. Though it had been long rumored that the actor was close to reaching a deal with the paper, talks apparently disintegrated in the proverbial "11th hour," leaving Observer founder Arthur Carter and EIC Peter Kaplan without a buyer. Both sides tell the Times that negotiations are truly dead, having failed to come to "mutually acceptable terms," and throwing in the towel is not some negotiation tactic. That is to say, this romance is over, and the pretty in pink paper is all alone (save for Duckie).

The real question remains: what ultimately killed the deal? We really hope this had nothing to do with Carter's sculpting hobby — they told him to quit asking De Niro to pose nude...

De Niro Backs Out of Observer Deal [NYP]

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