According to widely circulated rumors, Time-Warner will shut Business 2.0 after its Sept. 2007 issue.

Business 2.0 still has a strong circulation base, and says its readers are “very entrepreneurial, concerned with how they can work as if they were running their own company, even if they’re working for a big company. Many are young executives who haven’t read business magazines before. They’re looking for ways of navigating the new world of business through easily digestible stories for a busy lifestyle.”

But it seems as if Time-Warner decided Business 2.0 and Fast Company were competing after the same readers, and decided to focus on Fortune as it continues to battle with Forbes and Business Week.

It’s too bad. Business 2.o was a good outlet. Perhaps when big media figures out a new business model, TW will relaunch the magazine as Business 3.0