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.