1) Why did Facebook buy Instagram for $1bn in 2012?
To remove competition and make money
2) What are the benefits for media companies of vertical integration?
Gives them complete ownership
3) What are the benefits for media companies of horizontal integration?
Allows companies to widen their audience and find other ways to make money.
4) What is a subsidiary?
A company that is owned by a parent company
5) Give three examples of media companies that have used synergy to maximise the profit from a brand.
Disney
Pixar
Lego
6) List 10 companies that are part of the Disney media empire.
Marvel
Lucasfilm
Dreamworks
ABC
Hulu
Pixar
ESPN
Vice
The Muppets Studio
A+E Cable
7) Why did Disney buy Fox - what are the benefits?
Disney's acquisition of Fox will enhance its portfolio with popular franchises and branded content. The addition of Fox will give Disney access to hit movie franchises such as X-Men, Avatar, and Planet of the Apes. Disney will further be able to expand its international revenue mix and exposure.
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