Read this article from Recode about Facebook’s acquisition of Instagram and complete the tasks below:
1) Why did Facebook buy Instagram for $1bn in 2012?
Facebook brought Instagram to prevent the two medias to compete and to show they are wealthy enough to buy it.
2) What are the benefits for media companies of vertical integration?
This gives companies a chance to make money at every stage of production
3) What are the benefits for media companies of horizontal integration?
It allows companies to widen their audience and find other ways to make money
It allows companies to widen their audience and find other ways to make money
4) What is a subsidiary?
a company controlled by a holding company.
5) Give three examples of media companies that have used synergy to maximise the profit from a brand
7) Why did Disney buy Fox - what are the benefits?
Disney will assume $13.7bn in Fox debt as part of the stock deal, taking the total value of the transaction to more than $66bn also they will lessen the competition for themselves.
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