Description: A couple of Canada’s oldest print media chains joined forces in a major merger this past week. Quebecor divested itself of the Sun media chain in a sale to Postmedia. Some observers believe this type of consolidation in the industry is essential in the face of a changing media landscape.
Source: Global News.com
Date: October 6, 2014
Questions for Discussion:
1) What can the traditional media, like newspapers, do to counter the loss in revenue due to internet alternatives?
2) The article from Global News speculates that there could be up to $10 million dollars in cost savings in operating costs through this merger. As an accountant, what type of information could you provide to assist management in identifying cost savings?
3) How would the purchaser account for this $316 million acquisition?