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'WSJ' Local Kicks 'NYT' When Down

Why, then, is Murdoch committing $30 million to launch The Wall Street Journal's New York section on Apr. 26? Because he sees an opening in his fight against New York Times Co. Servicing the deb to Mexican industrialist Carlos Slim costs The New York Times $35 million a year. A local section in WSJ is a chance to poach department store and luxury ads.

The Times has 44% of its weekday circulation in the New York City area; high-end retailers overwhelmingly place their newspaper ads in the daily. The Journal derives an estimated 15% of its circulation from the region, so it is offering deep discounts for its Apr. 26 local launch. Saks Fifth Avenue has signed on. "There's no question a price war with Rupert would hurt," says Moody's analyst John E. Puchalla. Even if Murdoch loses money, he can still hurt his rival.

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