DISNEY - MEDIA STOCKS PLUNGE

MEDIA STOCKS PLUNGE

Warning that "content may no longer be kind in the entertainment business," Lehman Bros. cut the stock ratings of the top entertainment companies Monday while warning that the Internet and digital devices could fragmentize the media. In a research note, Lehman Bros. analyst Anthony DiClemente warned that "structural changes" in the way entertainment is delivered to the public were likely to "impact the core revenue and profits of the entertainment business. The media companies singled out by DiClemente, Disney, Time Warner, CBS, and Viacom all saw their shares drop, with CBS's shares plummeting the most -- 4.5 percent to $17.77. DiClemente predicted they would drop still further, to $16.00.

08/07/2008