This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Facebook Takes $2B Leap Into Virtual Reality

NEW YORK (The Deal) -- Facebook's (FB - Get Report) foray into virtual reality, via the purchase of headset developer Oculus VR Inc., comes with a $2 billion up-front price tag. If the virtual reality startup hits its targets, the price could rise by another $300 million.

The cash-and-stock payout is substantial, considering that Oculus does not have a consumer version of its virtual reality headset. Eager buyers have placed 75,000 orders for its developer kit.

Considered alongside Facebook's $19 billion purchase of messaging company WhatsApp in February, the price illustrates the outsized parameters of current technology valuations.

Must Read: Moody's Foresees Junky Valeant Pharmaceuticals Deals

"I think the key thing to keep in mind on this is these are all incredibly rare companies, right?" said Facebook CEO Mark Zuckerberg regarding the company's recent payouts during a Tuesday investor call.

"So we'll go a long period of time without doing anything like this and then I think we're in this kind of rare period now where we've just done two really close to each other," he added, referring to Oculus and WhatsApp.

Oculus developed its headsets for gamers, though Zuckerberg said the devices have applications in other fields and fit well with Facebook's traditional social media business.

"This is really a new social platform," he said. "By feeling truly present, you can share unbounded spaces and experiences with the people in your life. Imagine sharing not just moments with your friends online, but entire experiences and adventures."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GOOG $696.24 0.08%
MSFT $49.90 0.06%
AAPL $92.77 -0.91%
AMZN $658.30 -1.90%
FB $117.54 -0.44%


Chart of I:DJI
DOW 17,644.21 -7.05 -0.04%
S&P 500 2,053.26 +2.14 0.10%
NASDAQ 4,729.1960 +3.5570 0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs