Ownership and control: blog task
Read this article from Recode about Facebook’s acquisition of Instagram and complete the tasks below:
1) Why did Facebook buy Instagram for $1bn in 2012?
Facebook bought instagram so that they would cancel out other businesses .
2) What are the benefits for media companies of vertical integration?
The benefits for media companies is that they can maintain control and make profit
at the end of it .
3) What are the benefits for media companies of horizontal integration?
The benefits is that they can control a company the same level as them but still make profit .
4) What is a subsidiary?
less important than but related or supplementary to something.
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).
Harry Potter
Lion king
Spider man
Spider man
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 studios
ESPN Books
pixl
Dream works
Disney land resorts
Viceland
Lucasfilm
7) Why did Disney buy Fox - what are the benefits?
in a deal both companies said position them to compete in the rapidly changing media industry.
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