Industries : Ownership and Control

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

They saw a huge potential in instagram and realised it had other services.

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

It saves time, has reduced costs and better products

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

They have reduced competition improved market share and improved efficiency.

4) What is a subsidiary?
a business owned by 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).
A clothing company also selling accesories and jewlery, a movie company selling merch correlating to the movie or a electronic company selling non electrical items.

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: 
ABC
ESPN
Pixar
Star Wars
Hoolywood Records
Steamboat Ventures
Marvel
DC
Disney+
Hulu

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

So disney can expand more and increase market share.

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