You already know Business 2.0 folded, but don’t you want to know how Time Inc. COO John Squires explained to staffers that they’d rather shutter the magazine than sell the brand or its subscriber list? Yes, yes you do! So find the internal staff memo after the click-y.

September 5, 2007

To: Time Inc. Employees
From: John Squires
Re: Business 2.0

After much deliberation, we have decided to fold Business 2.0 into FORTUNE magazine and FORTUNE.com . Effective with the October 2007 issue, we will no longer produce Business 2.0 as a stand-alone magazine.

Business 2.0’s managing editor, Josh Quittner, and a number of Business 2.0’s key editorial staff will join FORTUNE to form the largest San Francisco bureau of any major business publication. Josh, an experienced and respected technology editor, will assume the role of Executive Editor at FORTUNE.

Business 2.0 developed a bold and innovative style of journalism that has uniquely captured the energy of Silicon Valley. Bringing Business 2.0 under the FORTUNE umbrella will strengthen our overall position and introduce this journalism to the world’s premier business readership, in print and online.

While we believe this is a positive step for the company and for our loyal readers, it is unfortunate to be losing some of our colleagues from Business 2.0. Rest assured, we are taking immediate steps to place as many employees as possible within Time Inc.

We thank the many talented and hard-working Business 2.0 employees for covering a cutting-edge industry and a new generation of business leaders. And, we look forward to FORTUNE carrying on that mission within its pages and on the Web.

J.S.