Ownership and Control

1) Why did Facebook buy Instagram for $1bn in 2012? 
The emails revealed that Zuckerberg wanted to buy Instagram as it was becoming a threat to Facebook

2) What are the benefits for media companies of vertical integration?
Vertical integration allows for better communication and collaboration between different divisions of a company, which improves the ability to respond to changes in the market

3) What are the benefits for media companies of horizontal integration?
Horizontal integration allows companies to cut down on their costs by sharing technology, marketing efforts, research and development (R&D), production, and distribution.

4) What is a subsidiary?
A subsidiary company is a business entity or corporation either fully owned or partially controlled by another company, known as the parent 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).
Disney,facebook and amazon

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: 

7) Why did Disney buy Fox - what are the benefits? 
Disney would be able to provide more appealing high quality content and entertainment options to meet and grow consumer demand; increasing it's international footprint and expand it's direct to consumer offerings.

Comments