Susan Gates resigned as publisher of Buzz magazine Tuesday in what her successor called a disagreement over the direction of the 5-year-old Los Angeles publication.
At the same time, the magazine announced unspecified plans for an expansion that is expected to include a foray into such unrelated services as home shopping.
Allan Mayer, the magazine's new publisher, declined to discuss why Gates left, and she could not be reached for comment. A person close to Gates said she was asked to resign "in a palace coup" because she resisted the move into new businesses at a time when Buzz was not making money.
Gates, a former magazine consultant, founded Buzz in 1990 with Mayer, who is also its editor, and Eden Collinsworth, its president and chief executive. Though the magazine has grown steadily since its inception, with paid circulation hitting 110,000 this year, it has been a black hole for its primary financial backer, Thai media magnate Sondhi Limthongkul. In an interview last year, Gates said she expected Buzz to become profitable in mid-1997.
In a statement Tuesday, Limthongkul pledged continued support for Buzz.