Ownership and control: blog task
Facebook bought Instagram for $1bn in 2012 because Facebook and Instagram are very similar social media companies meaning that they're in competition and since Instagram has more users than Facebook, they decided to to buy the rights to Instagram so that Facebook makes more money and wipes out the competition as well
One benefit of companies being in vertical integration is that they can wipe out their competition which means that they are less likely to lose money. Also, the fact that they own many companies will mean that their yearly profit will increase
What are the benefits for media companies of horizontal integration?
Subsidiaries are companies that are owned by companies that are potentially larger than them
Disney's Frozen, Pixar's Cars and Fox's Simpsons are 3 examples of companies that have used their programmes and movies to create other products such as toys, games and spin-off programmes.
6) Pixar, Lucas Studios, Marvel Studios, Dimension Films, Skellington Productions and Touchstone Pictures are some of a few subsidiary companies owned by Disney
7) Why did Disney buy Fox - what are the benefits?
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