Merger of detroit daily news and detroit free press

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Reference no: EM1371884

In 1989, Detroit Free Press and Detroit Daily News obtained authorization to combine under a special exemption from the antitrust laws. The merged firm continued to public the two newspapers but was operated as a single entity.

A) Before the merger, each of the separate newspapers was losing about $10 million per year. What forecast would you make for the merged firms' projects? Explain.

B) Before the merger, each newspaper cut advertising rates substantially. What explanation might there be for such a strategy? After the merger, what prediction would you make about advertising rates?

Reference no: EM1371884

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