Ownership and control

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

Facebook bought Instagram for $1bn in 2012 to prove they could build multiple products and become a multi-million dollar company.

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

The benefits of vertical integration in media companies is that they have a same chain of production and control for every stage and therefore make more profit.

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

The benefits for  horizontal integration in medias companies are more profit is made, attracts wider audience and can move onto other platforms.

4) What is a subsidiary?

Subsidiary are smaller companies brought by bigger parent companies.

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).

Three examples of media companies that have used synergy to maximise profits are: Disney (Lion King,Marvel etc), Warner Bros (Harry Potter) and 21 Century Fox.

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: 

10 Companies that are part of Disney's media empire are : Marvel, Sky, Fox, Hulu, National Geography,ABC,UTV, Go Pro,Star Wars and Dreamworks. 

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

Disney wants to buy Fox because they want to be able to stream content in the  comfort of their homes. And the benefits of this is that they make more profit and therefore become multi-million dollar companies eventually.