OK! magazine spent more than $500,000 on the "last" picture of Michael Jackson on a stretcher and possibly dead -- but was it worth it? A well-placed source says some staffers objected to owner Richard Desmond's decision to put the ghoulish picture on this week's cover -- and it looks like advertisers and readers may agree. The source said, "Media buyers have canceled upcoming meetings to discuss rates. It's a disgrace. They've sunk to a new low."

In addition, Sean Combs and Jay-Z are said to be so furious, "they're organizing a boycott," according to our source. A rep for OK! said, "This is untrue. No one at OK! has been contacted about any such cancellations as a result of the magazine's coverage of this news event. Any pages booked by the advertising team are running as scheduled." Combs' rep echoed, "Not true." Jay-Z's rep didn't return calls.

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