• Lehman's stock price took a beating once again yesterday, this time amid chatter that Pimco and SAC Capital were pulling business from the bank. [WSJ, NYP]
  

The six big TV-and-movie conglomerates — CBS, Viacom, Disney, NBC Universal, News Corp. and Time Warner — suffered in a handicap yesterday by Lehman Brothers analyst Anthony DiClemente, who downgraded the companies' ratings and stock-price targets. CBS fared worst, but even News Corp. didn't come out unscathed, and all six saw their respective share prices drop on the news. DiClemente's "color" had a familiar refrain — while DVD sales are only down 5 percent over 2007, the analyst doesn't expect digital downloads and other new media distribution revenues to keep pace with the decline in lucrative sales of packaged plastic. In other words, movies and television will take the same hit that music labels and newspaper publishers have. But what does this mean to your average plebe blogger with a script treatment busy shooting sketches on digital cameras and looking for a break?

• As expected, Lehman announced it will pay more of employees' compensation in stock this year; the bank also granted a mid-year equity bonus on July 1st. [Reuters]

• An upgrade from Morgan Stanley is expected to help out Lehman's stock price, which fell 11 percent yesterday amid talk of a firesale. [Reuters]

• For his next act, former Bear Stearns CEO Alan Schwartz may jump to private equity. [NYP]

• Embattled Lehman Bros. posts a $2.8 billion loss for the quarter [WSJ]

Local News

The most powerful woman on Wall Street—at least according to Portfolio—is out of a job. Erin Callan, the chief financial officer of Lehman Brothers and the woman who has been on the firing line since Lehman accounced a series of unexpectedly large write-downs (and a disastrous quarterly loss), has been demoted. She'll stay at the bank, albeit not as CFO. And she's not the only one. Joe Gregory, the firm's president and chief operating officer, has been demoted, too.

Lehman Brothers analyst Doug Anmuth told the crowd at the EconAds conference in New York that the search market will grow 27 percent to $11 billion in 2008. Display advertising will grow 25 percent. The total online advertising market will grow 23 percent in 2008.

• Lehman Brothers is reportedly looking to raise capital (yet again) to shore up its balance sheet. The grim news sent the stock down 8% this morning, and likely ruined Dickie Fuld and Erin Callan's day. [WSJ, AP]

Between 1970 and 2005, U.S. venture-backed companies created 10 million jobs and produced almost 17 percent of the country's GNP, and according to BusinessWeek editor Spencer Ante, one man is largely responsible for all of that. He is former Harvard Business School professor and "founder of the modern VC industry" Georges Doriot, the subject of Ante's new book Creative Capital. "[Doriot] was the first one to believe there was a future in financing entrepreneurs in an organized way," Lehman Brothers banker Arnold Kroll told Ante. Doriot's disciples went on to found or help run Greylock Partners, Fidelity Ventures and Kleiner Perkins. So now we know whom to blame. Photos from the Creative Capital book launch party held in New York last night, below.

Travel search engines Kayak and Sidestep will merge to form a new company, according to reports. As part of the deal, Kayak raised another $196 million from current investors Sequoia Capital, General Catalyst Partners and Accel Partners as well as from Sidestep investors Norwest Venture Partners and Trident Capital and new investors Oak Investment Partners and Lehman Brothers Venture Partners. The merger will create the fifth largest online travel destination. That sad boast might make you wonder, how'd they get so many VCs on board?

Philip Kaplan seems to have patched things up with AVN, the porn-industry trade publisher with which his company, AdBrite, runs an online ad network for adult websites. Earlier this month, AVN had abruptly yanked the AdBrite-run version of AVNAds.com offline and replaced it with its own hastily-built site for selling ads. In response, insiders said, Kaplan was readying to launch BlackLabelAds.com, AdBrite's own porn-ad network. Now, however, the AdBrite-run version of the network is back online. The spat however, came with a heavy financial price.