Musical Chairs in Hollywood

In a fast-action sequence worthy of Indiana Jones, Para mount and 20th Century-Fox last week played switcheroo with top executives. Paramount Chairman Barry Diller, 42, the man responsible for the studio's long string of recent successes (Indi ana Jones and the Temple of Doom, Raiders of the Lost Ark, Terms of Endearment, Flashdance), is becoming chairman of 20th Century-Fox. He replaces Alan Hirschfield, 47, who will stay on as a consultant. Marvin Davis, half owner of Fox, wooed Diller by giving him part ownership of the film studio, along with salary and bonuses that will doubtlessly exceed the $2.5 million he earned at Paramount.

Gulf & Western replaced Diller with Frank Mancuso, 51, Paramount's marketing chief. Michael Eisner, 42, Diller's former second in command, quit his post, apparently because Mancuso got the job he wanted. There were rumors that Diller would bring Eisner to Fox, which needs an infusion of fresh ideas.

Fox has had only one big hit this year, Romancing the Stone, and a string of flops, including Rhinestone, Unfaithfully Yours and Sixpack.