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What forecast would you make for the merged firms profits

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Reference no: EM131039143

In 2002, the Atlanta Journal and the Atlanta Constitution, once fierce competitors, merged to become the Atlanta Journal-Constitution, the only remaining daily newspaper in the city.

a. Before the merger, each of the separate newspapers was losing about $10 million per year. What forecast would you make for the merged firm's profits? Explain.

b. Before the merger, each newspaper cut advertising rates substantially. What explanation might there be for such a strategy? After the merger, what do you think happened to the Atlanta Journal-Constitution's advertising rates?

c. What do you think the increased availability of online news sources has had on advertising rates?

Complete this essay in a Microsoft Word document, with a minimum of 300 words, APA formatted and two references.

Reference no: EM131039143

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