Create a new blogpost called Industries: Ownership and Control. Read this article about Facebook’s acquisition of Instagram and complete the tasks below:
- 1) Why did Facebook buy Instagram for $1bn?
Facebook bought Instagram since i was a viral and successful app, causing this to become a rival for Facebook. So buying Instagram takes away that competition whilst also working as some sort of investment to gain money due to Instagram's popularity and success.
2) What are the benefits for media companies of vertical integration?
Vertical integration gives companies the opportunity to make more money. Complete ownership = more profit.
3) What are the benefits for media companies of horizontal integration?
Horizontal integration allows companies to widen their audience and find other ways to make money.
4) What is a subsidiary?
When a company is controlled by 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, Pixar, Century fox.
Comments
Post a Comment