cutmedia

A bit too literal, but might work.

First, though, does this logo work without the blue blend in the background? Make it black, on a white background and then we can see the letterforms for what they are. The blue background actually makes it harder to tell.

Ok this is the black version
http://img204.imageshack.us/img204/8688/blackl.jpg

I think if you do a cut, which I think works you should keep the typeface super simple. It will make the idea clearer. Also you may want to cut through and shift the two parts of the logo.

Reminds me of this, a bit: http://www.cit.com/about-cit/index.htm

I like Ivan's idea of slicing all the way through, then offsetting the resulting halves. I can't tell if the word "media" has sharp or rounded edges. Should be sharp.

if the word media wasn't underneath to throw me off, i'd totally think hair cutting.

I read hair salon too.

This is a reboot for me, but I'll point out an obvious issue if you decide to continue down this path... the C is the wrong size. Curved letters hang below the baseline - this one is floating above it. Appears to be 2 or 3 points smaller than the U and T on my monitor.