Industries: Ownership & control
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?
Instagram had just 30 million users and zero revenue.
Now, Instagram has more than 600 million users, and many analysts believe it will soon be a multi-billion dollar ad business.it proved that Facebook could build multiple products at the same time
2) What are the benefits for media companies of vertical integration?
if it has different companies in it same chain means it has complete ownership and it gets more profit.
3) What are the benefits for media companies of horizontal integration?
Has the help of other companies to help their production and widen their audience also it increases profit for both companies.
4) What is a subsidiary?
a small company owned by a bigger company called a conglomerate.
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 , Facebook , Warner bros
7) Why did Disney buy Fox - what are the benefits?
Comments
Post a Comment