A couple days ago, social networking giant Facebook (NASDAQ:FB) annouced that it would be acquiring Oculus, a small company that has been developing an exciting new immersive virtual reality platform, in a deal worth $2 billion. Of that, $400 million will be in cash, and the rest will be in Facebook stock.
In this segment from Friday's Tech Teardown, host Erin Kennedy and Motley Fool tech and telecom bureau chief Evan Niu take a close look at the acquisition, and look at some of the possible ideas for why this niche gamer technology would be interesting to the world's largest social network, as well as how dilutive Facebook's recent acquisitions using stock have been for shareholders.
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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 and Google. The Motley Fool owns shares of Facebook and Google. 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.