1) Why did Facebook buy Instagram for $1bn? Facebook bought Instagram for $1bn because they found out that the majority of people use Instagram rather than Facebook, so they bought it, and they found out that the users of Instagram isn't just a photo sharing app, but it's become a competitive social network. 2) What are the benefits for media companies of vertical integration? Vertical integration is when a one conglomerate owns a different business that have the same chain of production and distribution. 3) What are the benefits for media companies of horizontal integration? The benefits for media companies of horizontal integration is that they let the company that they bought do what they used to do even though they are getting more famous than the company who bought them, because all the money that the company they bought will still be on their hands. 4) What is a subsidiary? Subsidiary is when the company is being controlled by a bigger company, which means they ...
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