Facebook (NASDAQ:FB) 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.
The biggest thing to come out of Silicon Valley in years
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.
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.