Stephen Chao Is Rehired at Fox

Stephen Chao, who created the hit Fox TV show “Studs” and then was sacked by Rupert Murdoch for hiring a male model to disrobe at a company management conference last year, has been rehired by Fox--this time as a movie producer.

Chao will develop low-budget movies and look for ways to make films “outside the system,” according to one studio source. Under the agreement, Fox will distribute his efforts.

Chao earned a reputation when he was a TV producer at Fox for finding ways to make shows cheaper than anyone else by favoring non-union crews and eschewing the normal pool of expensive talent pushed by Hollywood agents.