NEW YORK (TheStreet) -- Facebook (FB) shares are down -0.5% to $60.84 on Friday following news of a possible hiccup in the social media company's plan to acquire virtual reality gaming company Oculus.
In a statement sent to various media outlets yesterday, Zenimax Media stated that they "recently sent formal notice of its legal rights to Oculus concerning its ownership of key technology used by Oculus to develop and market the Oculus Rift. ZeniMax's technology may not be licensed, transferred or sold without ZeniMax Media's approval."
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The dispute is centered around current Oculus Chief Technology Officer and former ZeniMax employee, John Carmack. ZeniMax claims that the intellectual property Carmack used to develop the Oculus Rift -- Oculus flagship product -- is owned by ZeniMax.
Facebook announced plans to purchase the company for $2 billion in March.
TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."