Why Is Facebook Willing to Spend so Much on Oculus?

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March 26 (Bloomberg) –- Bloomberg’s Brad Stone discusses Facebook’s spending spree. He speaks with Trish Regan on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Product that you and i could buy yet.

Why does facebook want it so much?

Why does facebook want it?

A great question.

Because they kind of missed mobile.

Look, even though mobile advertisements are a majority of their revenue, even though the facebook app is doing well and they are doing others, they want to make a bet akin to the one that google placed on android in 2005. they want the future.

Mark zuckerberg believes the future is virtual-reality.

We will see.

There has been concern that facebook has been skewing older and that teens are going to other platforms to connect socially.

Can this change that equation by bringing in say the whole gaming community who might really like this virtual-reality tool?

I don't think the teenager question is quite it.

Technology companies today are being defined by what google calls moonshot.

One of the big bets on the future, google is flying balloons and google glass.

For apple is wearable computers.

We really did not have an answer to that question for facebook.

Mark zuckerberg has now gone and paid a lot of money and said that this is the facebook edition.

It is still a social vision that was friends in a virtual world.

So, $2 billion is a lot of money.

Got to say.

They are willing to spend.

That is right.

I mentioned android, google placed his bet in 2005. maybe it is a sign of the times.

Maybe it is a function of how badly mark zuckerberg wanted it and how little the oculus executives really wanted to sell . nevertheless, it is extraordinarily expensive.

You saw me doing a demo on the technology.

I am sitting down because when you move around, you don't know if it will cause nausea.

I want to talk to you about the technology.

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

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