Industries: ownership and media

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

Facebook acquired Instagram in 2012 (at a cost of $1 billion) so that they could cancel out the competition by making money from both.

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

The benefits are you're making money, by having different companies in the same chain of product is if one of your companies are down and aren't making enough money it wont effect you as much because you'll still be making money from your other companies. 

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

The benefits of horizontal integration are you can have two or more companies that are making lots of money and cancel out the competition by making money from all of your companies. horizontal integration helps you find ways to make more money. 

4) What is a subsidiary?

subsidiary is a company that belongs to other 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).

1. Disney
2. Marvel
3. Harry potter 

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. ESPN books 
2. Maker studios 
3. Marvel Press
4. ABC entertainment 
5. Hulu
6. Viceland 
7. Pixar
8. Marvel
9. Lucasfilm
10. Starwars.com 

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

The benefits of Disney buying Fox are Disney will have more of a variety, have more content and entertainment 
and Disney will make more money and their business will be more successful.   

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