Industries: Ownership and Control.

 1) Why did Facebook buy Instagram for $1bn in 2012?

But purchasing Instagram turned out to be one of the best tech acquisitions of all time, helping secure Facebook's dominance in social media for years to come. It did that by quickly imprinting its influence on the famously simple photo-sharing app, adding new features that helped it grow to more than 1 billion users

2) What are the benefits for media companies of vertical integration?


  • Eliminates dependency on external suppliers. Vertical integration gives a business independence from external suppliers. ...
  • Saves time. ...
  • Reduces costs. ...
  • Better products. ...
  • Increased expertise. ...
  • Improves marketability. ...
  • Increased market control/share. ...
  • Creates economies of scale.


3) What are the benefits for media companies of horizontal integration?


Undergoing horizontal integration can benefit companies and typically takes place when they are competing in the same industry. The advantages include increasing market share, reducing competition, and creating economies of scale.


4) What is a subsidiary?

a company that is owned or controlled by a parent or holding company.

) Give three examples of media companies that have used synergy to maximise the profit from a brand


 an advertisement on television might be more persuasive than its print counterpart in convincing the consumer to purchase the product or service

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