Now the word is Koten may be out, too — not just of his office, but his job, too. When asked, Koten said he "planned on appearing for jury duty tomorrow." To avoid a leak, we hear managers are calling employees with the news that Mansueto Ventures CFO Mark Rosenberg is taking over temporarily. But we suspect Koten, a fan of both the B-52s and Aristotle's Rhetoric, is happiest while at sea.

After a late-night email sent by Koten urging his employees to interview him to "show some respect" got leaked earlier this month, Koten "had his assistants move all of his stuff into a cubicle outside his office," the tipster told us. Joe Mansueto, the founder of mutual-fund research firm Morningstar and owner of Fast Company and Inc., works from a cubicle. "After several years of working out of an office now seems a really weird time to become "a man of the people,'" our tipster notes.

Koten has an erratic reputation. One media veteran familiar with his career calls him "one of the unheralded geniuses of the magazine business" but also the "laziest man in the world." Legend has it that the devoted sailor once turned down a promotion at the Wall Street Journal that would have had him move from Chicago to New York because of the cost of berthing his boat. (He later made the move, and recently invited Mansueto Ventures employees to bring their children on board his boat for Take Your Children to Work Day.)

Media Business hailed him as one of the top innovators in the magazine business for FastCompany.com and FastCompany.tv. But the architect of those websites, Ed Sussman, was fired in October. FastCompany.tv star Robert Scoble inexplicably lasted through March, despite spending more of his time Twittering than videoblogging. Perhaps Fast Company can bring him back to do a remake of "I'm On a Boat"?

(Photo by rexhammock)

Here's a memo he sent to all staff at Mansueto, which also publishes Inc., the magazine Koten used to edit, last night:

From: John Koten
Sent: Thu 4/9/2009 11:49 PM
To: ALL MANSUETO
Subject: Thought for the day

I realize few of you want a life identical to mine. However, it does kind of amaze me that in the entire time we've been at 7 world trade center, not a single employee has ever directly asked me....how did you succeed in our business. How did you do it.

This surprises me for several reasons: one, because I think I could give an interesting answer. Two, because it's the subject matter we are supposed to be presenting our readers. Three, because it would impress me and show some respect.

It's a question I constantly asked people when I was young, including all of my bosses and every ceo I interviewed. I asked richard petty, I asked michael jackson, I aslked joe mansueto, I asked john delorean. I asked peter kann, I asked norman pearlstine. I asked john huey. It's a pretty easy question to remember.

And that's at least one tip you can have without ever even bothering to ask me.

Earlier in the day, Koten announced that employees' children visiting for Take Our Daughters/Sons to Work Day "are all going over to see the ceos [sic] boat." And then he sent this email:

From: John Koten
Sent: Thu 4/9/2009 6:56 PM
To: ALL MANSUETO
Subject: Sailing

One of my crew on panet claire is the best sailing instructor in New York. He will be happy to teach anyone sailing ir just take you out on my boat this summer. He also gives private lessons, can help you join the manhattan sailing club (free lessons). 800 bucks plus unlimited access to boats a few blocks from our office. Check it out at msc.org.

A tipster tells us Koten bought a boat last year and spent most of summer working on it.

The tipster adds that Koten suggested employees spend $800 on sailing lessons after two rounds of layoffs in September and January, and a move two weeks ago to force everyone to take two unpaid weeks of vacation, effectively cutting salaries by 5 percent. As for how Koten is "succeeding in our business"? Joe Mansueto, the owner of the company, the tipster says, writes a $2 million check every month to keep his magazines afloat.

Update: We heard from Koten!

That was a hilarious article today. I have no personal objection to any of it. However, joe mansueto wrote me from vacation to ask me to tell you that your loss numbers are way off and uninformed.

You are welcome to come over and chat with me, see our place, see my boat, etc.—any time.

I'll have some news you could break whenever you choose to come.

The style of this email confirms the authenticity of our tipster's leaked memo. It's interesting how Koten manages to reach the shift key to capitalize "I," but doesn't manage it on proper names, even his boss's. (Or he's just an iPhone or BlackBerry user who's grown overreliant on his phone's autocapitalization feature.) We also note that Mansueto didn't specify if our source's estimate of losses was high or low, just "way off."

A tipster shares this theory about the timing of Koten's email: booze. Koten is reportedly a Rangers fan, and gets drunk at games. The Rangers played last night. Ergo, drunken email. Koten says: "Yes, the Rangers made the playoffs last night, so I was pretty happy."

A Mansueto tipster confirms that Koten often shows up at the office at noon. One staffer notes that one of the rare occasions when Koten appeared at the office in the morning was when he announced the unpaid time off — after which he promptly left for a vacation in Jamaica.

(Photo by rexhammock)

It's obvious what's in it for the magazines which write about them. Rose makes a compelling story, even if Inc. had to resort to ridiculous hyperbole:

Rose has managed to put himself at the center of an ever-expanding new-media empire. In addition to Revision3 and Digg, he recently launched an Internet messaging service called Pownce. Thanks to Rose's star power and a well-designed website, Pownce quickly attracted more than 150,000 people, who use it to share music, videos, and links with their friends. This means Rose owns an online newspaper, an online television network, and an online communications platform.

Ladies and gentlemen, geeks of the world, please welcome Kevin Rose. He is the first vertically integrated Internet celebrity — part Steve Jobs, part Howard Stern — and the next media mogul.

Wait a second: Revision3, Rose's "online television network," is mostly a vehicle for distributing videos where Rose chugs beer with Albrecht and discusses Digg headlines. It just laid off several employees and canceled five shows. Pownce is barely known outside of San Francisco — and its insidery core of users know that it's secretly a great way to swap copyrighted music and video files without getting threatening letters from the RIAA. And Digg?

Well, Digg just raised $28.7 million in venture capital, after several rounds of acquisition talks with Current, News Corp., and Google went nowhere. Digg needs to get big — which means Rose needs to change his image.

He's always been the beer-drinking slacker who started Digg on a whim, and never wanted to run a big company. That story no longer works. Instead of believing in the wisdom of crowds, Rose needs to run from it. His tech-geek fan base isn't large enough to take Digg into the territory where an IPO is plausible.

Burnt by a goofy BusinessWeek cover that made him look like a joke, Rose has stayed away from print. But now he needs the mainstream media as much as they need him. Coverage in second-tier publications like 7x7 and Inc. lead to more, higher-profile stories.

Will editors in New York's high-rise offices ask pesky questions about Pownce and Revision3? No, they'll just read his clips, and think Rose really is the next Howard Stern. In that future path lies true stardom, not just Internet fame, and real riches, not just paper ones. But it means abandoning the ideals which led him to start Digg in the first place.

• Don't start a company unless its an obsession you love.
• If you have an exit strategy, its not an obsession.
• Hire people who will love working.
• Know how your company will make money.
• Know your core competencies and pay up for people. Outside core competencies, hire people cheap
• Shoot yourself before you spend money on an expresso machine.
• No offices. There is nothing private in a start up.
• As far as technology, go with what you know.
• Keep the organization flat.
• Never buy swag.
• Never hire a PR firm.
• Make the job fun for employees. Reward them. My first company, I would walk around handing out 100 dollar bills to salespeople.