Ownership and control

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1) Why did Facebook buy Instagram for $1 billion in 2012?
Because millions of people use Instagram which will go from pennies to millions and billions of pounds

2) What are the benefits for media companies of vertical integration?
Vertical integration when one conglomerate own different companies in the same chain of production

3) What are the benefits for media companies of horizontal integration?
Horizontal integration is when one company buys other companies at the same level of distribution

4) What is a subsidiary?
A company controlled by a 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
- Harry Potter
- Universal 

6) Read this BBC article on Disney buying 21st Century Fox. List 10 companies that are part of the Disney media empire. This graphic may help you: 
-Marvel
-Sky
-UTV
-Hulu
-Sphero
-ESPN
-Dreamworks
-ABC Entertainment
-Pixar
-Lucasfilms

7) Why did Disney buy Fox - what are the benefits?
One year after the Walt Disney Co. announced the $71.3 billion merger, it's official.  Disney, which already owns the Pixar, Marvel and the Star Wars brands, will now also get Deadpool and the Fox-owned Marvel characters such as the X-Men and Fantastic Four, allowing for the full Marvel family to be united.


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