Seeking Alpha

More on Facebook/Oculus

  • "Imagine enjoying a court side seat at a game, studying in a classroom of students and teachers all over the world or consulting with a doctor face-to-face -- just by putting on goggles ... Imagine sharing not just moments with your friends online, but entire experiences and adventures." writes Mark Zuckerberg in a Facebook (FB) post, explaining why his company is spending up to $2.3B to buy a VR headset maker.
  • Nonetheless, Zuck suggests Oculus will initially focus on its gaming opportunity. Last week, Oculus began taking pre-orders for its second-gen developer kit - it includes an updated Rift VR headset sporting a higher-res display and a camera that allows users to reposition their heads.
  • Oculus CEO Brendan Iribe promises the Rift will get much more comfortable and portable over time. "A decade or two from now, it will be nothing but sunglasses." If/when that happens, Rift might be squaring off against Google Glass.
  • A weekend NYT column discussing Oculus and Sony's headsets: "After trying an array of prototypes and development kits ... I can assure you that virtual reality works. Technology is no longer the limitation. The lingering question is what game designers, artists and filmmakers should do with it."
  • The fact Facebook is mostly paying for both Oculus and WhatsApp with shares that have soared over the last 8 months, even though the company has $11B+ in cash/investments and could obtain cheap debt, hasn't gone unnoticed.
  • FB -0.9% AH
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Comments (40)
  • combatcorpsmanVN
    , contributor
    Comments (1088) | Send Message
     
    $FB - I believe it's a brilliant move to use a company's shares to buy/acquire another company. First, it converts shares to a hard asset (presumably after thorough research/due diligence); and, Second, it provides access to, in this instance, an up and coming technology company already on the receiving end of substantial angel investor money. The fact that Andressen is on the BOD gives me a large degree of solace that the acquired company must have something going for it.

     

    As usual, FB's mgmt is way ahead of the curve imo.
    25 Mar 2014, 06:41 PM Reply Like
  • Andrei Volgin
    , contributor
    Comments (627) | Send Message
     
    Virtual reality is hardly a hard asset (pun intended).

     

    This deal adds more costs and no revenues to Facebook.
    25 Mar 2014, 09:42 PM Reply Like
  • gwynfryn
    , contributor
    Comments (5159) | Send Message
     
    And reduces the value of existing shares.
    26 Mar 2014, 08:38 AM Reply Like
  • rsbduff@gmail.com
    , contributor
    Comments (438) | Send Message
     
    Right Track!
    Facebook is on the right track. Using their stock to buy up tomorrow's businesses is easier than developing them.

     

    The only missing link is Facebook Ventures. Like Google Venture, where they provide seed money for great ideas. Of course that means you have to develop a way for the outside ideas to get inside. Maybe someday.

     

    RSBDuff
    25 Mar 2014, 06:42 PM Reply Like
  • The Growth Investor
    , contributor
    Comments (222) | Send Message
     
    I strongly agree. Just wrote a SA article about Google Ventures: http://seekingalpha.co...
    25 Mar 2014, 08:41 PM Reply Like
  • sadams7008
    , contributor
    Comments (24) | Send Message
     
    Good time to jump back in then...
    27 Mar 2014, 08:07 AM Reply Like
  • benitus
    , contributor
    Comments (2358) | Send Message
     
    sadams.....still not good enough yet, unless you want to jump in and jump off, like I often do. I won't suggest jumping in until it goes below $50 but that's entirely up to you. Live long and prosper!!
    27 Mar 2014, 09:17 AM Reply Like
  • sadams7008
    , contributor
    Comments (24) | Send Message
     
    I added more at $59.. Still have it going to $80.. by next earnings call
    27 Mar 2014, 07:34 PM Reply Like
  • benitus
    , contributor
    Comments (2358) | Send Message
     
    sadams....seems like you made a good call but I would recommend that you cash out before the lockups expire. It's not a risk worth taking.
    28 Mar 2014, 11:13 AM Reply Like
  • Mark Krieger
    , contributor
    Comments (4670) | Send Message
     
    what multiple did they pay for Oculus?...If they make $100 million a year and their earnings are growing at 20%, then the deal is probably not bad.
    25 Mar 2014, 06:52 PM Reply Like
  • gwynfryn
    , contributor
    Comments (5159) | Send Message
     
    Unfortunately, growing from nothing at 20%, still leaves nothing...
    26 Mar 2014, 08:41 AM Reply Like
  • JillKennedy
    , contributor
    Comments (72) | Send Message
     
    Well, that was a stupid thing to do:
    25 Mar 2014, 06:58 PM Reply Like
  • hank1958
    , contributor
    Comments (13) | Send Message
     
    Jill look what FB has done since your article was posted back in 2012! Think I will trust Mark until proven different!
    25 Mar 2014, 11:13 PM Reply Like
  • gwynfryn
    , contributor
    Comments (5159) | Send Message
     
    I think I was always "FB indifferent", but I billion (and still growing, if we are to believe these figures) think otherwise.
    26 Mar 2014, 08:44 AM Reply Like
  • BAHAMAS1
    , contributor
    Comments (3144) | Send Message
     
    Another Brilliant move by FB / Zuck paid for by allowance $$.

     

    GROWTH IS THE FUTURE and FB is establishing itself as a true GROWTH INVESTMENT.

     

    Well done FB....AGAIN !
    25 Mar 2014, 07:04 PM Reply Like
  • benitus
    , contributor
    Comments (2358) | Send Message
     
    Sigh....FB has never failed to amaze me in recent months, desperately seeking out one trick after another, just to stay relevant and not lose its user-base, or maybe, it's building bridges to other ships, so that it can jump ship when FB crashes through loss of active users, not plain old subscribers. That's a thought!!
    25 Mar 2014, 08:08 PM Reply Like
  • sadams7008
    , contributor
    Comments (24) | Send Message
     
    This is For the Future not Now... Yes they have the Gaming play, but with this new company they can do much more... I trust Zuck thats why I bought his stock when it went down to $25 and i am holding..$FB
    26 Mar 2014, 01:34 AM Reply Like
  • gwynfryn
    , contributor
    Comments (5159) | Send Message
     
    Cheer up, ben; it's just a case of "inertia rules"!
    26 Mar 2014, 08:46 AM Reply Like
  • benitus
    , contributor
    Comments (2358) | Send Message
     
    Yes, gwyn....downward inertia, that's what FB has been engaged in. Someone should remind Zuck that you can't build something from nothing. Like you said, it's the shareholders that are paying the bill and it'll be the shareholders who gets ripped off if nothing comes out of it. Thank goodness I've been short FB a long time ago and still making money. Thanks, FB, for helping me to make money from my shorts. Keep it up, Zuck, I'll drink to your exuberance in spending shareholder funds without a care. Dream on, genius!!
    26 Mar 2014, 09:59 AM Reply Like
  • Manitobatex
    , contributor
    Comments (951) | Send Message
     
    So Zuckerberg wants to rival Google and it is now obvious that he might succeed.

     

    Next acquisitions should be Comcast & Bank of America & in that order.
    25 Mar 2014, 08:23 PM Reply Like
  • Ocean Man
    , contributor
    Comments (603) | Send Message
     
    I can reposition my head just fine without purchasing that.
    25 Mar 2014, 08:56 PM Reply Like
  • gwynfryn
    , contributor
    Comments (5159) | Send Message
     
    I like mine just where it is; where else should it be?
    26 Mar 2014, 08:47 AM Reply Like
  • jorde
    , contributor
    Comments (16) | Send Message
     
    Excellent move GROWTH $ Take off you blinders if you can't see it.
    25 Mar 2014, 10:24 PM Reply Like
  • youngdub774
    , contributor
    Comments (110) | Send Message
     
    Basically Zuckerberg just described what you can do with television and video chat for this absurd purchase
    26 Mar 2014, 12:17 AM Reply Like
  • ok1sec
    , contributor
    Comments (4) | Send Message
     
    I just don't see how this is going to benefit FB. OR has only been in the hands of developers and still has to test the waters of consumers. This reminds of when everyone was jumping up and down for 3D TVs three years ago. Wave of the future they said, everyone will have one. Yeah right! 3D TVs were hype and so is this. The tech is very interesting especially for salivating gamers who envision playing their favorite games on it, but beyond that it's a roll of the dice. A lot of people that have used the OR get motion sickness (not all). Until this thing can be tweaked to where no one gets physically affected by its use, then it's a no go. 2 billion dollars means FB expects to recoup that amount, and some. They wont make that money back for years if ever. The one key importance here is the alienating of the developers. Don't underestimate the indie scene right now. If you are cast out from that circle expect no support from the developers. Without them this thing is dead in the water. I don't see grandma hopping on a VR device to chat with old sonny boy in college. That's just creepy. The tech was best left to blossom in the gaming world, not sprung into the social media realm as a knee-jerk reaction to stay relevant. There's no telling where this thing will go in the next 5 years, but personally I already had a Virtual Boy and those days are long gone. I'm not strapping anything to my face just to veg-out on a couch like a meth addict. Get real. Yet with some development the tech could one day go far beyond a device strapped to your face. Good Luck Oculus Rift! You had the potential to be one of the great ones. Nobody likes a sell out. Now your just another piece in the machine.
    26 Mar 2014, 01:54 AM Reply Like
  • all on board
    , contributor
    Comments (215) | Send Message
     
    Zuckerberg is a rare visionary in the mold of Steve Jobs!
    26 Mar 2014, 02:04 AM Reply Like
  • Genus
    , contributor
    Comments (5) | Send Message
     
    Insanity. Suckerberg got now what 7billiom in the bank. He better make sure that he can do successful secondary any time soon. Whatsapp, drones and now goggles. He is trying to keep fb mindshare and fight Goog with their glasses.
    26 Mar 2014, 02:37 AM Reply Like
  • 22643611
    , contributor
    Comments (2086) | Send Message
     
    @Genus, "Suckerberg"?

     

    Really? You, a shmuck posting on financial message boards are taking
    Zuckerberg to task.

     

    How amusing.
    26 Mar 2014, 06:14 AM Reply Like
  • marzette
    , contributor
    Comments (2) | Send Message
     
    Catalyst for another run?
    26 Mar 2014, 02:58 AM Reply Like
  • Andrei Volgin
    , contributor
    Comments (627) | Send Message
     
    $2 billion is a huge bet on a single team. Considering how many Facebook projects have failed (email, Home, Gifts, Credits, etc.), this is a very risky bet.

     

    I can only imagine how many virtual reality projects will be funded in the next few months, and how many great minds will work on the technology.
    26 Mar 2014, 03:44 AM Reply Like
  • 22643611
    , contributor
    Comments (2086) | Send Message
     
    It is a big bet, but everyone thought FB was out of their minds for buying
    "Instagram".
    26 Mar 2014, 07:03 AM Reply Like
  • Andrei Volgin
    , contributor
    Comments (627) | Send Message
     
    Instagram had real users, and it was growing like crazy. And how much did Facebook pay for them? Compare that to a virtual reality company that works on a product that has not been tested by the market yet.
    26 Mar 2014, 11:28 AM Reply Like
  • Fenleff
    , contributor
    Comments (5) | Send Message
     
    As a FB shareholder, I like it
    26 Mar 2014, 07:27 AM Reply Like
  • Hope128
    , contributor
    Comments (112) | Send Message
     
    When money come easily, you spend them easily.

     

    Obviously when FB shareholders pour money into FB to give it such a high valuation, zuckerberg feel every right to use them freely, as long as the money is not out of his own bank account.
    26 Mar 2014, 09:13 AM Reply Like
  • BAHAMAS1
    , contributor
    Comments (3144) | Send Message
     
    genus-
    Childlike insulting comment.

     

    Also check your spelling (billioM) before dumping on others !

     

    Not a good start on SA for only your 2nd comment!
    26 Mar 2014, 10:15 AM Reply Like
  • benitus
    , contributor
    Comments (2358) | Send Message
     
    now, now, Bahamas1.....we must remember that readers of SA come from all over the world, so not everyone are fully competent in using English, as they may be 2nd or 3rd language users. I must complement "genus" for his courage to speak his mind, which isn't insulting at all, although I'm having difficulty understanding his point.
    26 Mar 2014, 10:37 AM Reply Like
  • BAHAMAS1
    , contributor
    Comments (3144) | Send Message
     
    benitus-

     

    Changing someone's name to show ones disgust for the individual is not only Childish but Ignorant. THAT had nothing to do with language.

     

    It was a purposeful negative personal attack on someone, and anyone condoning this is equally as wrong !

     

    These kind of snotty comments are becoming too frequent on SA and become demeaning to the site as a whole.

     

    Also spell check would have picked up on the "billioM'.
    But the writer was too eager to make his snide comment for affect rather than content.
    Place your chiding where it belongs.
    26 Mar 2014, 11:48 AM Reply Like
  • benitus
    , contributor
    Comments (2358) | Send Message
     
    I'm sorry, Bahamas1, if I had offended you. No such intent meant. Was there something that I missed from "genus" comments? I was just going by that last remark which you responded to. Now, I would agree totally with you that insults, childish comments, negative remarks and personal attacks have absolutely no place on SA, as I've always called them out. I always said that anyone can disagree with everything I said but that doesn't entitle them to attack me or what I said because we have the right to free speech and the right to respond to such attacks. Unfortunately, some people can't seem to see what they've done and often insist on having the last word, so it goes back and forth, which I'm sure would bore others to death. BTW, I wasn't chiding you. I was only attempting to placate you, in case, you're truly incensed, which you seem to be. Anyway, I'm staying out of this dispute, as I'm too busy making money covering my shorts from today's retreat for all my counters. Good luck, my friend.
    26 Mar 2014, 04:12 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (3144) | Send Message
     
    benitus-
    No problem friend and Thanks for the kind note.

     

    I'm just fed up with the name calling. Genus' 2nd word used,(which I'm sure was to make an impression-wrong one ), was "Suckerberg" (not a typo).

     

    This was only the 2nd comment this writer has made on SA.

     

    No big deal but SA should not allow this name calling and whether one agrees with Zuckerberg, FB or whatever, he at the least should be respected.

     

    Any case, have a great night and good luck to you also.
    26 Mar 2014, 05:52 PM Reply Like
  • benitus
    , contributor
    Comments (2358) | Send Message
     
    You're welcome, my friend. Thanks for the kind wishes. Civility is so indeed refreshing. Maybe, we need to invest into air fresheners as well.
    27 Mar 2014, 07:54 AM Reply Like
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