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Ownership and control: blog task

 1) Why did Facebook buy Instagram for $1bn in 2012?

Facebook Bought Instagram because Paul Kedrosky, a tech investor and author of the Infectious Greed blog, told the BBC: "I understand Instagram has 13 employees - so at $77m a head that makes it the most expensive business deal in history that I can think of."

2) What are the benefits for media companies of vertical integration?

  • Lower transportation costs and turnaround times.
  • Reduced disruptions and quality problems from suppliers.
  • Lower costs through economies of scale.
  • Improved profitability.

3) What are the benefits for media companies of horizontal integration?

It helps to create more money and makes the company more popular among readers

4) What is a subsidiary?

 a subsidiary is a company that belongs to another 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
  • Sony Pictures Motion Picture Group
  • Warner bros

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 Studios
Lukas Films
Fox
20th Century
Sky 
National Geographic
Hulu
ESPN
ABC
History Network

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.

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