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Facebook Is On a Shopping Spree

By Evan Niu, CFA and Erin Kennedy - Mar 28, 2014 at 7:00PM

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Not long after announcing plans to acquire WhatsApp for $19 billion, Facebook is at it again and acquiring Oculus VR for $2 billion.

A couple days ago, social networking giant Facebook ( FB -1.14% ) 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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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