Ownership and control: blog task

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

Facebook bought instagram so they could make more money and also make sure instagram would'nt be their rival .

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

Vertical interegation is when companies have loads of other little companies which they own meaning they have more companies which give them more incomes meaning they produce more money .

3) What are the benefits for media companies of horizontal integration?
 
Companies don't want rivals as they could end up losing so they buy the other company to make sure there company just becomes bigger and better . 

4) What is a subsidiary?

A smaller company owned by a big company that are under control .

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-they make toys , theme parks and more just from they're all from they're other produces . 
2.Harry Potter-  starting off from books they have mate sucesful movies , theme parks and more . 
3.WWE-from they're shows they have gained lots of fans which buy they're toys , magazines and more .

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: 
Marvel,abc news,vice,ESPN,go pro,UTV,sky,nat geo,pixar,hulu


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

Fox was a conglomerate company and were making loads of money and had loads of different types of media products so Disney bought fox to hold down a rivalry and so fox could not gain any more power .


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