OWNERSHIP AND CONTROL

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1) Why did Facebook buy Instagram for $1bn in 2012?
Face book bought Instagram for $1bn to eliminate competition hoping it would earn them money

2) What are the benefits for media companies of vertical integration?
The benefits for media companies of vertical integration is that they save a lot of money

3) What are the benefits for media companies of horizontal integration?
The benefits for media companies of horizontal integration is that it stops the competitions

4) What is a subsidiary?
Subsidiary is a company controlled by a holding 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).
Companies that have used synergy to maximise the profit from a brand are Disney, Universal and Time Warner.

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

Pixar
Hulu
ABC Entertainment 
ESPN
Vice
The muppet studio
Lucas film
Dreamworks II
Star wars
Marvel

7) Why did Disney buy Fox - what are the benefits?
Disney bought Fox so that they eliminate competition. The benefits are it allows them to earn money from a bigger audience 


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