Ownership and control

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1) Why did Facebook buy Instagram for $1bn in 2012? 
Facebook brought Instagram for $1bn in 2012 because they wanted to build multiple products and become a multi billionaire company.

2) What are the benefits for media companies of vertical integration?
 The benefits for media companies of vertical integration are that profit at every stage of the production and control every stage.

3) What are the benefits for media companies of horizontal integration?t
The benefits for media companies of horizontal integration are there is more profit and attract a wider audience. Also it spreads risk and diversity: move into other platforms.

4) What is a subsidiary?
Subsidiary is smaller companies owned 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 the profit from a brand are: Disney, Warner Brothers and 21st Century Fox.

6) List 10 companies that are part of the Disney media empire. This graphic may help you: 
10 companies that are part of the Disney media empire are:  SKY, Fox Entertainment Group, Walt Disney Studios, Hulu, National Geographic Partners, Marvel Entertainment, Marvel Studios, Disney Music Group, Disney Theatrical Group, and Stream Boat Ventures.

7) Why did Disney buy Fox - what are the benefits? Disney brought Fox because the acquisition of 21st Century Fox is a key moment in a pivot towards streaming premium content directly into peoples living rooms. The benefits are they have more variety and can make a lot of profit.

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