Ownership and control: blog task

1) Why did Facebook buy Instagram for $1bn?

The reason why Zuckerberg wanted to buy Instagram as it was becoming a threat to Facebook. As Instagram was rapidly becoming a big app mark new the remove any competition or threats towards Facebook.


2) What are the benefits for media companies of vertical integration?

Some benefits are that you get more profit and creative control. Among the most notable potential benefits of vertical integration are: greater economies of scale.



3) What are the benefits for media companies of horizontal integration?

one benefit of using horizontal integration is that Increasing market share, reducing competition, and creating economies of scale.


4) What is a subsidiary?

 subsidiary is a company that belongs to another company, which is usually referred to as holding 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



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