Ownership and control: blog task

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1) Why did Facebook buy Instagram for $1bn in 2012?
Facebook bought Instagram because of  rivalry and because Facebook wasn't doing so well. It proved that Facebook could build multiple products at the same time, and also sent a message to other entrepreneurs that Facebook was the best place in Silicon Valley to drive massive growth.

2) What are the benefits for media companies of vertical integration?
They would have complete ownership meaning more profits.

3) What are the benefits for media companies of horizontal integration?
They'd widen their audience and find other ways to make money.

4) What is a subsidiary?
Another way of saying smaller 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).
Walt Disney, Warner Brothers and Universal Studios.

6) Read this BBC article on Disney buying 21st Century Fox. List 10 companies that are part of the Disney media empire.

1. Marvel Entertainment
2. Pixar
3. Star India
4. Sky Plc
5. Tata Sky
6. Hulu (30%)
7. ABC Entertainment, News and Radio
8. ESPN (80%)
9. Viceland
10. A + E cable channel (10%)

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


Disney buying Fox benefits them as investing in a  online streaming platform is a good way to encounter a downturn in it pay-Tv business and threats from these new rivals. It  also adds to Disney's catalogue of high-grossing films such as the  Marvel superhero movies, Original Star Wars movies Avatar and Dead-pool, as well as Tv hits such as Modern Family, Family guy and The Simpsons.

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