Lehman Brothers Monday downgraded shares of News Corp. to "Equal Weight" from "Overweight", according to the Associated Press.

In a note to investors, analyst Anthony DiClemente reduced his price target from $26 per share to $15 per share. He pointed out two main causes for concern: threats from digital content distribution as well as the company's exposure to the newspaper business.

According to DiClemente, the surge of digital distribution of film and TV content challenges the company's 20th Century Fox movie and TV segment - a threat just like what the music industry faced earlier in the decade, the AP reported.

Meanwhile, News Corp.'s heavy exposure to newspapers is a liability. DiClemente estimates it accounts for 20 percent of 2009 revenues, mostly caused by shrinking circulation and plummeting ad revenue in the industry.

Moreover, investors still have concerns that the company may use its strong balance sheet to make stock-dilutive acquisitions, according to DiClemente in the note.

Shares of News Corp. on Friday rose 12 cents to close at $14.76, according to the AP.