Titan K.O.'d

The last straw, however, seems to have been Titan A.E., which Mechanic unluckily opened just as his departure became public. Mechanic had placed a heavy bet on animation at Fox; in 1994, he spearheaded the costly creation of Fox Animation Studios, whose first product was 1997's Anastasia, which grossed $56.5 million. Desperately looking for a cartoon hit, he turned to Anastasiacodirectors Don Bluth and Gary Goldman with the idea for the PG-rated sci-fi cartoon Titan A.E. ''Bill said, 'I want you to make an animated movie that will attract 13- and 14-year-old boys,''' Goldman told EW in April. ''We said, 'God, Bill, that's exactly when they're rejecting animated movies. But okay, we'll try!'''

Unfortunately for Mechanic, Goldman's instinct was correct: Titan — which is said to have cost more than $80 million — earned a paltry $9.4 million in its opening weekend. Within three days Mechanic was out; within a week, the Phoenix-based Fox Animation Studios, which had already laid off two thirds of its staff, was completely shut down. Indeed, Mechanic says his biggest disappointment at Fox was ''not being able to get animation over the hump.'' It's a disappointment that will cost Fox tens of millions of dollars.

By some accounts, the move to push Mechanic out was ultimately made by Chernin — ironically, the man who'd hired Mechanic to begin with. ''There was tension in the relationship [between Murdoch and Mechanic], no question about it,'' says a high-ranking company source. ''But this was Peter's decision. It had nothing to do with Murdoch.'' Other Fox sources insist the decision was Murdoch's alone, with Chernin simply acting as the messenger.

On the subject of his relationship with Murdoch, Mechanic will only say, ''It was never great.'' About Chernin, he adds, ''with Peter it was good for a long time, and it was not great at the end.'' (Murdoch and Chernin declined to comment.)

As for who might sidle into Mechanic's plush two-room office, smart money has the post going to one of two insiders: Tom Rothman, president of Twentieth Century Fox Film Group and former head of Fox Searchlight, or Tom Sherak, chairman of Twentieth Century Fox Domestic Film Group, a 17-year Fox veteran who oversees the studio's distribution and acquisition. Whoever takes over can rest easy for a short time, knowing that Mechanic will likely remain the scapegoat for any near-future flops. The remainder of Fox's 2000 slate includes the $75 million X-Men; Robert De Niro and Cuba Gooding Jr. in The Diver; Nicole Kidman's musical Moulin Rouge; and the Tom Hanks flick, Cast Away, a DreamWorks coproduction.

Mechanic, meanwhile, is considering starting his own film company, similar to what former Disney chief Joe Roth started earlier this year, though he'd also be open to another studio job. Wherever he ends up, don't expect his first project to be a cartoon.