Ownership and control

1) Why did Facebook buy Instagram for $1bn in 2012?That all changed in 2012 when Facebook paid an astounding $1 billion to acquire Instagram. The Instagram acquisition let investors know that Facebook understood where the market was headed and was prepared to pay money to stay relevant to its clientele. In 2014, Facebook bought WhatsApp for $19 billion.

2) What are the benefits for media companies of vertical integration? The company gets more profit.

3) What are the benefits for media companies of horizontal integration? allows audience to find other ways to make more profit.

4) What is a subsidiary? subsidiary is small company owned by big company like the warner brother or disney.

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). a example of a synergy is pixel and disney. Disney bought pixel to take away the competition so its disney pixel

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.Star India 
3.sky plc
4. Pixar
5. Hulu
6. Tata sky
7.ESPN
8.Viceland
9.ABC Entertainment, news and radio
10.A + E cable channel

7) Why did Disney buy Fox - what are the benefits? Disney bought Fox to delete their rival, buying Fox Disney gained more profit as well as their usual target audience.