Industries: Ownership And Control

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1) Facebook bought Instagram for 1 billion because Instagram was one of Facebook's competitors as they are in a very similar market therefor, Facebook would want to remove this competition.Instagram was at it's peak of popularity so the price would be it's maximum or close to the maximum that Instagram could be sold for so Instagram would be very interested in the amount of money.

2) A benefit of vertical integration for media companies is that it gives companies the chance to make money at every stage of production. This means that they have complete ownership.

3) A benefit of horizontal integration for media companies is that it allows companies to widen their audience and find other ways to make money and if they buy other companies it can lead to removing rivals in the same market.

4) Subsidiary is a company that is controlled by a holding company.

5) Three examples of media companies that use synergy to maximise profit are Disney, Marvel and StarWars .

6) Ten companies that are part of the Disney media empire are Marvel, Pixar, Lucasfilm, Hulu, ABC entertainment, ESPN, The muppets studio, StarWars.com and Disney world resorts.

7) Disney bought Fox because they want to increase the range/amount of content that they own to meet the demands of the consumers and they have been investing in online streaming platforms to counter competition like amazon .

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