Industries:ownership and control

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

Facebook bought Instagram to prove it could buy multiple companies at the same time.

2) What are the benefits for media companies of vertical integration?
the benefits for media companies is to gain ownership and profit.



3) What are the benefits for media companies of horizontal integration?
The benefits are that one company is allowed  to buy another company


4) What is a subsidiary?
subsidiary is when a company creates a brand that can be used across different media producers and platforms.

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).
Disney-Pixer
Google-Motorola mobility
Facebook-Instagram

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: 

1)Sky
2)Fox
3)Pixer
4)Regional sports network
5)Lucas films
6)Warner Brothers
7)Marvel Studios
8)Dream works II
9)Avatar and Dead pool
10)International Holding.

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

Disney will assume $13.7bn in Fox debt as part of the stock deal, taking the total value of the transaction to more than $66bn.



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