3 Reasons Facebook Is Interested In Oculus Rift
At first glance, Facebook’s (FB) acquisition of Oculus Rift for $2 billion doesn’t make sense. What could a social network with an online presence and a mobile app have in common with a virtual reality headset maker that is barely eking out revenues?
The expensive price tag further puzzled analysts. A valuation is an indicator of the acquiring company’s faith in the acquired company’s potential, whether it pertains to talent, technology or a combination of both.
Facebook has acquired several companies big and small over the years. It’s last big acquisition was Instagram for a price tag of a billion dollars in 2011. That price, which was a bet on Instagram’s future potential, has been more than justified four years later with Instagram crowned the fastest-growing established social network.