Harrah's to buy Caesar's Palace

Harrah's Entertainment Inc. is planning to buy its cross-town rival Caesar's Entertainment Inc. Even though it is a buyout by one company of another, this reminds me of the trade issues we looked at in Chapter 2. Granted I'm only making assumptions as to actual reasons why Harrah's is obtaining Caesar's, but the article mentions that Harrah's profits slipped 2% (assumably over the last year; the article does not say exactly how long that has been). Any, to my trade point. Perhaps Harrah's sees it this way: they are good when it comes to the entertainment business; Caesar's name is recognizable throughout the world. They are now going to specialize: the former Harrah's division of the company will take care of entertainment and shows, etc. where the former Caesar's end will take care of the hotels and casino's end. That way, the two parts can focus all resources totally on what they do best.

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