INDUSTRIES: OWNERSHIP AND CONTROL
1) Why did Facebook buy Instagram for $1bn? Facebook bought Instagram for $1bn because there are a lot of people using Instagram. Instagram is also popular as the app is free. In addition there are 30 million users uploading more than 5 million pictures every day. 2) What are the benefits for media companies of vertical integration? The benefits for media companies of vertical integration is that the company owns different companies that they bought to make more profit. 3) What are the benefits for media companies of horizontal integration? The benefits for media companies of horizontal integration is that the company buys other companies at the same level distribution which allows them to widen their audience and find other ways to make money. 4) What is a subsidiary? A subsidiary is a small company, it is when a company is being held by a larger company. 5) Give three examples of media companies that have used synergy to maximise the profit from a brand (there is one above to he...
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