Kelly: “Mayor Mike’s company is now seen as the frontrunner, replacing Lazard boss Bruce Wasserstein, owner of New York Magazine and The Deal.” He reports that Bloomberg originally passed when approached before the formal auction began because the price was too high. Fine cites several sources “familiar with the situation” and says Bloomberg reps are “expected to meet with BusinessWeek executives to get more detailed information on the magazine’s operations early next week.” Not to rush anyone but the final bid date is Sept. 15. Other media bidders thought to be in the process include Morningstar founder Joe Mansueto and ZelnickMedia; PE firms include Platinum Equity. OpenGate Capital and Warburg Pincus.

—T-r-o-u-b-l-e?BW’s Steve Baker blogs that Bloomberg can afford it—BW “probably would cost him less than his re-election campaign on Staten Island alone”—but being acquired by his company could be “bad news” for BW staffers. “Conceivably, he could buy the brand and the subscribers, hold onto a handful of staffers and get his own employees to do the rest of the work.”

More as warranted.