1) Why did Facebook buy Instagram for $1bn in 2012?
Facebook brought Instagram for $1bn in 2012 because to compete and even remove competition and create more profit.
2) What are the benefits for media companies of vertical integration?
Benefits for media companies of vertical integration is that they own all everything in the chain of production so they gain more profit.
3) What are the benefits for media companies of horizontal integration?
Benefits for media companies of horizontal integration is that it helps companies to grow and build in size and power by removing competition
4) What is a subsidiary?
A subsidiary is a company that is owned or controlled by another bigger 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 as they make movies but also create theme parks, merchandise and events.
Warner Bros also as they make movies but also create theme parks, merchandise and events
Sony also make games and merchandise.
Marvel Entertainment
Lucusfilm
Pixar
Sky
ESPN
Hulu
National Geographic
ABC
Vice
GoPro
7) Why did Disney buy Fox - what are the benefits?
The benefits are that Disney reduce competition and also make more profit for all the companies Fox owns.
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