"Apparently, it's bring your stalker to work day."
The failure of Pucks was being noticed by everybody. It was not just that Pucks was a poor show, it was because the network had rejected a low-brow talking dog show which ended up becoming very successful on a rival network. This caught the attention of Merc's boss, Elliot Salad.
After a night of compulsive overeating and drinking, Matt woke up to find his stalker in bed with him. In an effort to keep her out of his house unsupervised, Matt made the decision of bringing the stalker to work with him.
Merc went on a big rant about how the network did not have any shows on vampires, and that even AMC had a show on zombies. The creative team brainstormed up a bunch of asinine ideas, that included gargoyles, dragons, goblins, shape-shifters, ogres, mutants, huge rats, etc.
Sean was still not taking the idea of Beverly seeing another man. As Beverly pointed out, Sean's pattern is to get weirder, before becoming saner. In this scene, Sean was pushed to the point of laughing hysterically, as a bad attempt to cope with Beverly's new relationship.
Matt regretted the decision to phone up his stalker, so he had to tell her that he was no longer interested in pursuing anything with her. Undeterred, the stalker insisted that she will always be waiting for Matt, regardless if things take a turn for the worse. As Matt stepped away, the stalker answered a call from Matt's ex-wife on his cellphone, resulting in the stalker's name being said out loud to Matt's daughter.
Carol had a meeting with Elliot Salad, who insisted that they get together without Merc being there. Elliot ranted about the talking dogs show's popularity, the poor decisions on Merc's part, and the plan to fire Merc.
Elliot proposed giving Merc's job to Carol.