Can Facebook Inc Grow Oculus to Critical Mass?
Facebook recently acquired Oculus VR for a hefty $2 billion, which turned some heads since the two companies seemingly have little in common. Facebook clearly hopes that Oculus will become a broader platform, and as such Oculus now envisions a future where its virtual reality platform extends beyond just gaming. Oculus VR CEO Brendan Iribe recently discussed the deal at TechCrunch Disrupt, and says that Oculus could reach 1 billion users in the future. Iribe also notes that the deal sparked considerable interest among bigger developers who are now interested in developing content for Oculus Rift.
In comparison, Facebook's WhatsApp deal cost almost ten times as much and Facebook also expects WhatsApp to reach 1 billion users in the near future. In fairness, WhatsApp is already halfway there, while Oculus is starting from scratch as its product has yet to officially ship. How realistic is it for a seventh of the world's population to adopt virtual reality technology?
In this segment of Tech Teardown, Erin Kennedy discusses Oculus VR's ambitious hopes with Evan Niu, CFA, our tech and telecom bureau chief.
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The article Can Facebook Inc Grow Oculus to Critical Mass? originally appeared on Fool.com.Erin Kennedy has no position in any stocks mentioned. Evan Niu, CFA has the following options: short January 2015 $60 puts on Facebook and long January 2015 $35 puts on Facebook. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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