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Facebook continues Business acquisitions with Oculus

Successful Maryland entrepreneurs often realize that they need to spend money in order to make money. This is true even for wildly popular companies that are raking in billions of dollars. Social media giant Facebook is looking to expand its business with a new business purchase. The company recently paid $2 billion to acquire Oculus VR Inc., a maker of virtual reality headsets.

This will be Facebook's first foray into the world of mobile hardware. The company is looking to capitalize on the fact that more than one billion Facebook users access their accounts through mobile devices such as tablets and smartphones. The company has already completed Business acquisitions with apps such as Instagram and, more recently, WhatsApp Inc.

The Oculus acquisition will allow Facebook to enter the wearable technology market, which includes Google. Oculus allows people to play games and access virtual reality experiences through the use of a device that looks like ski goggles. But, this device is not exclusively for gamers. Facebook is hoping to market this product to the mainstream population as a communications platform. The goal is to allow consumers to take online courses, communicate with doctors and participate in sporting events through the use of the Oculus device.

Buying a business can be a risky situation, especially in the technology market. Technology is always changing, so something that is popular right now may become obsolete by the end of the year. Companies need to research the market thoroughly before writing a check. There are no guarantees. In fact, the technology market is so volatile that a company looking to grow could easily end up in the other direction.

Source: Financial Post, "Facebook Inc to acquire Oculus virtual reality headset maker for US$2-billion" Sarah Frier, Mar. 25, 2014

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