In the video below Fool portfolio manager Matt Argersinger and managing editor Eric Bleeker discuss tech events across the past week.
In the video below, the two discuss Facebook's (NASDAQ:FB) recent acquisition of Oculus VR, a company most famous for producing a 3D virtual reality headset for gaming. The acquisition was especially notable because Facebook paid $2 billion for it even though it hasn't begun commercially shipping a product.
Eric, who is a big fan of Oculus' product, discusses his fear around the acquisition. Notably, it reminds him of Microsoft's (NASDAQ:MSFT) WebTV acquisition back in 1997. It was a whopper of a deal at the time, with Microsoft shelling out over $500 million for a company that was just 20 months old, an age that happens to be identical to Oculus VR at the time of Facebook's purchase.
The problem with Web TV, was it was a product that required years of infrastructure build out (broadband, HDTV, etc.) before it could become a viable product, so it floundered at a big company like Microsoft that is frequently acquiring companies and moving on to new projects. Eric fears Oculus could suffer the same fate with Facebook.
To see Eric and Matt's full thoughts, watch the video below.
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Eric Bleeker, CFA owns shares of Facebook. Matthew Argersinger has no position in any stocks mentioned. 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.