Facebook Buys Device Maker Oculus for $2 Billion

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March 25 (Bloomberg) -- Facebook said it will buy virtual-technology company Oculus VR for about $2 billion, in its first push into the hardware-technology industry. Cory Johnson reports on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

We gave you just before the break.

Facebook making another acquisition.

That deal agreed to buy oculus cr.

We took a look at the company.

Right now i am wearing a virtual reality headset.

Then i am flying up into space.

I now see my enemies.

They're making a big promise that virtual reality will finally feel real.

What a virtual reality were perfect and we could have an experience and feeling like we were in the same space.

Palmer lucky created the rift headset and his parents garage.

This was your hobby.

Your personal passion.

Now you're the cofounder of the company that is worth $275 million.

You get to live your passion.

A lot of people who are a lot smarter, it is not just me.

I was always skeptical because i grew up in the 1980's and 1990's. there was a lot of excitement but the technology was not ready.

Technology is finally there.

All it takes is a few seconds and you realize this has potential to change the world.

That is because oculus has a new technology called positional tracking.

When the character -- person leans forward the character leans forward as well.

Optics technology has advanced.

We are able to deliver on the promise of environments that are nearly photorealistic.

We accomplished a lot.

It is very seamless.

I am not feeling any nausea.

It is most like i am there.

The buzzer has brought out some competition.

Sony just announced project morpheus.

Executives are not worried.

I think a number of people will jump in because we have proven that those are the markets.

I hope they deliver something great and it makes a vr that much better.

It is not clear whether the developers will ever embrace the technology.

When can consumers buy this?

Rex when it is ready.

Not a second before that.

Is that in 2014? rex we will see.

Rex let's talk about the $2 billion deal.

We are joined by cory johnson in san francisco.

We know they have the money but why does this deal makes spent -- cents?

Rex he addresses this in the press release and announced the conference call for investors.

He's is -- he says very clearly.

What we see is a trend of acquisitions, of revenue-free companies.

Now this oculus acquisition.

This is twice of what they paid for instagram.

They're trying to pick them off one by one and bring them into the fold of facebook.

Do think this is anything about facebook's basic is this plan that maybe they're concerned and that is why they were at -- they are doing these acquisitions?

I wondered if there was an existential crisis.

There were zero revenues.

They were able to fix that.

What they recognize is the way that people -- they do not want to be introduced -- locked into a mechanism.

It is interesting to watch them develop vertical platforms where you have the facebook thing.

And you have the facebook thing and your phone.

Then you have instagram.

A completely separate thing that does not necessarily integrate with facebook and our -- or back and forth.

There are places where people might be spending time away from facebook.

If facebook wants to link them into the fold.

It talked about the market for virtual reality.

What do we now about this market, the potential for size and demand among consumers and elsewhere?

I was one short on oil.

They said it is so big we cannot even measure.

We do not know how big this is.

Because it does not really exist at.

We will see if it really develops.

It is an enormous bet with shareholders resources for facebook to do this for business that does not exist.

It seems a very aggressive, maybe it is really wrong.

They obviously had a lot of cash to spend and have a valuable currency.

Welcome to the ipo price and they are not afraid to use it.

I wonder if they're collecting assets and seeing which one plays out.

If they are doing a portfolio game.

It is to go to do this kind of cash flow analysis.

There is no revenue at all.

We do not know what the product is.

This is a highly speculative investment.

And a very big dollar amount here.

In the best of worlds late round venture m have been in the market ulcer.

It can help the company grow and can ship their development with lots of voices from experienced company builders in the form of other venture capitalists at this company will have.

They will have the money from facebook that they are making choices to develop only under the facebook wing and go in whatever direction facebook wants him to grow.

You mentioned that conference call will start in under half an hour.

What is the number one question you will be asking the folks at facebook?

Rex there is words i would not use on television.

Wtf might be there.

Investors will want to know what are you doing with all this cash, what are you doing with all the stock question mark to you really have a vision here?

Maybe someone will be clever enough to come up with a vision.

Good stuff as always.

Our thanks to cory johnson.

Coming up, looking to shed

This text has been automatically generated. It may not be 100% accurate.

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