ownership and control task
1) Why did Facebook buy Instagram for $1billion in 2012?
Facebook bought instagram in 2012 because they wanted to buy a smaller company, make it big and to prove to everyone that they can make a smaller comany big.Now Instagram is worth 100 billion thanks to facebook's exposure.
2) What are the benefits for media companies of vertical integration?
Vertical integration benefits companies by allowing them to control the process, reduce costs, and improve efficiencies. Backward integration is wherea company expands backward on the production path into manufacturing
3) What are the benefits for media companies of horizontal integration?
.Makes more revenue when merged
.There target audiance expands
- .Increased market power. ...
- .Reduced competition. ...
- .Access to new markets.
4) What is a subsidiary?
A subsidiary or subsidiary company is a company that is owned or controlled by another company. Normally a smaller company bought by a bigger 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).
Star wars is one because it has movies,games,comics and toys
Another one is frozen because they have a film (another one just came out)toys and books
Another one is lion because they have a film,toys,comics and books
ABC entertainment
ABC news
star wars.com
marvel entertainment
ESPN
pixar
vice
disney
hula
lucas film
7) Why did Disney buy Fox - what are the benefits?
Disney had initially agreed to acquire Fox for $52.4 billion, before a counter-offer from Comcast prompted it to increase its bid to $71.3 billion
also disney will get way more revenue
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