Facebook Loses $500 Million Virtual Reality Headset Verdict – Bloomberg (Feb 1, 2017)
I’ll have more on Facebook earnings shortly, and this is bound to come up, but this is a big loss for Facebook financially as well as embarrassing for some key figures from Mark Zuckerberg through the Oculus employees who were directly impacted in this verdict. Facebook will no doubt appeal, so this isn’t settled yet, and it only adds the equivalent of a quarter of the original purchase price to the $2 billion Facebook spent on Oculus, but it’s not chump change. Given how little revenue Oculus is likely to generate in the near term, this will put the acquisition further into the red for the time being. There are also eery echoes here of the Winkelvoss case against Zuckerberg himself, which of course was settled before a verdict like this was reached. Certainly not how Facebook would want to go into what looks at first glance like a really solid set of earnings.
via Bloomberg
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