Industries: Ownership And Control

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

Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread the app. “We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience

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

Among the most notable potential benefits of vertical integration are: , as an organisation's fixed-cost base is spread across a larger range of operations; the migration of some fixed, external costs (e.g., logistics) to variable costs, over which the organisation has greater control

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

Undergoing horizontal integration can benefit companies and typically takes place when they are competing in the same industry. The advantages include increasing market share, reducing competition, and creating economies of scale

4) What is a subsidiary?

 it is a company that belongs to another company, which is usually referred to as the parent company or 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).

  • Revenue Synergies.
  • Cost Synergies.
  • Financial Synergies.
  • 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 Books
    • Maker Studios
    • Marvel Press
    • StarWars.com
    • The Muppets Studio
    • ABC Entertainment
    • ABC News & Radios
    • ESPN
    • Hulu
    • Marvel Entertainment    


    • 7) Why did Disney buy Fox - what are the benefits?
    • so disney can expand itself and increase market share

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