Industries: Ownership and Control

 1) Why did Facebook buy Instagram for $1bn in 2012? instagram has become a key fixture of Facebook 's growth. Facebook bought the photo-sharing start-up for $1 billion in 2012, paying what seemed like a shocking sum of $1 billion for a company with 13 employees at the time

2) What are the benefits for media companies of vertical integration? Vertical integration allows for better communication and collaboration between different divisions of a company, which improves the ability to respond to changes in the market. You also have the power to implement changes and improvements that makes production more efficient

3) What are the benefits for media companies of horizontal integration? Undergoing horizontal integration can benefit companies and typically takes place when they are competing in the same industry. The advantages include increasing market share, reducing competition, and creating economies of scale.

4) What is a subsidiary? A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or 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).

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: Through these various segments, Disney owns and operates the ABC broadcast network; cable television networks such as Disney Channel, ESPN, Freeform, FX, and National Geographic; publishing, merchandising, music, and theater divisions; direct-to-consumer streaming services such as Disney+, Star+, ESPN+, Hulu, and Hotstar; and Disney Parks, Experiences and Products, which includes several theme parks, resort hotels, and cruise lines around the world.

7) Why did Disney buy Fox - what are the benefits? Just after last weeks Disney Investor Call Event, CEO Bob Iger spoke with CNBC about the upcoming streaming service, Disney+, where he revealed that the only reason why purchased 21st Century Fox was because of their plans for Hulu and Disney+.