1) Why did Facebook buy Instagram for $1 Billion in 2012?
Facebook brought Instagram for $1 Billion in 2012 so that they were able to cancel out the competition. If Facebook didn't buy Instagram in 2012 they would have eventually become bankrupt and no longer exist.
2) What are the benefits for media companies of Vertical Integration?
The benefits for Vertical Integration media companies is that subsidiaries (smaller companies) are owned by conglomerates (bigger companies). The conglomerates reach out to lots of subsidiaries around the world so there target audience is at a wider range to earn more money.
3) What are the benefits for media companies of Horizontal Integration?
The benefits for Horizontal Integration media companies is that similar companies buy each other so that there no longer in competition and work together to make their products better to gain more money from their target audience.
4) What is a subsidiary?
A subsidiary is a smaller company that's owned by bigger companies such as Comcast, Disney, CBS etc.
5) Give three examples of media companies that have used synergy to maximise the profit from a brand (there's one above to help)
One media company that have used synergy to maximise profit is Facebook they brought Twitter for $1 billion. Another media company is Disney they brought Marvel for $4.2 billion. Alphabet Inc. owns Google and brought it for $12.5 billion.
6) Read this BBC article on Disney buying 21st Century Fox
List 10 companies that are part of the Disney media empire.
Disney owns Marvel, Lucasfilm, Pixar, Dreamworks II, Disneyworld Resorts, Disneyland Paris, ABC Entertainments, Viceland, ESPN & Hulu
7) Why did Disney buy Fox & what were the benefits?
Disney brought Fox because they knew it was going to become big and bring in a lot of money so they decided to buy it, the benefits that they got from this is more money.
One media company that have used synergy to maximise profit is Facebook they brought Twitter for $1 billion. Another media company is Disney they brought Marvel for $4.2 billion. Alphabet Inc. owns Google and brought it for $12.5 billion.
6) Read this BBC article on Disney buying 21st Century Fox
List 10 companies that are part of the Disney media empire.
Disney owns Marvel, Lucasfilm, Pixar, Dreamworks II, Disneyworld Resorts, Disneyland Paris, ABC Entertainments, Viceland, ESPN & Hulu
7) Why did Disney buy Fox & what were the benefits?
Disney brought Fox because they knew it was going to become big and bring in a lot of money so they decided to buy it, the benefits that they got from this is more money.
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