Ownership and control: blog task

1) Why did Facebook buy Instagram for $1bn in 2012?

The reason why Facebook bought Instagram in 2012 for $1 billion because Facebook wanted to avoid the competition between the two companies.


2) What are the benefits for media companies of vertical integration?

The benefits for media companies of vertical integration is that they make more profit in every stage of production.

3) What are the benefits for media companies of horizontal integration?

The benefits for media companies of horizontal integration is that it allows companies to widen their audience and find other ways to make money.

4) What is a subsidiary?

Subsidiary is in the corporate world, a subsidiary is a company that belongs to another company.

5) Give three examples of media companies that have used synergy to maximise the profit from a brand (there is one above to help you).

Lion king, Harry potter and also marvel.

6) Read this BBC article on Disney buying 21st Century Fox. List 10 companies that are part of the Disney media empire. This graphic may help you: 

ESPN
Malvel studio
Lucas film
Pixar
Dreamworks
The Muppets studio
ABC entertainment
Hulu
A+E cable channel
ABC News cable

7) Why did Disney buy Fox - what are the benefits?

Disney bought fox because for more sells and also revenue can go up.



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