Will The Backlash Against Facebook Be The Doom Of Its Acquisition Spree?

Tyler Durden's picture


Spending your inordinately over-valued 'currency' on an ever-reaching (and increasingly over-valued) portfolio of dreams may have been the stuff of expanding multiples and social media stock-lovers; but for the creator of Minecraft (among the world's most popular games), Facebook's move to buy Oculus was the last straw. As WSJ reports, Markus Persson just cancelled his company's deal with Oculus explaining that he "did not chip in ten grand to seed a first investment round to build value for a Facebook acquisition." It seems shareholders are of similar mind, cutting Facebook's value by $6bn this morning after the $2bn acquisition.

As WSJ reports,

The ripples from Facebook’s deal to buy Oculus VR are spreading quickly.


Not long after news broke that the videogame-goggle company was getting acquired, the creator of one of the most popular videogames today said he was canceling an Oculus Rift project. Markus Persson, creator of “Minecraft,” said the company he founded, Mojang, was in talks to bring the game to Oculus before the Facebook deal.


Not anymore.

As Persson notes on his personal blog,

Facebook is not a company of grass-roots tech enthusiasts. Facebook is not a game tech company. Facebook has a history of caring about building user numbers, and nothing but building user numbers. People have made games for Facebook platforms before, and while it worked great for a while, they were stuck in a very unfortunate position when Facebook eventually changed the platform to better fit the social experience they were trying to build.




I have the greatest respect for the talented engineers and developers at Oculus. It’s been a long time since I met a more dedicated and talented group of people. I understand this is purely a business deal, and I’d like to congratulate both Facebook and the Oculus owners. But this is where we part ways.

It seems shareholders are agreeing today...


Facebook has spent $21 billion in the last month and the stock has fallen 15%... or ~$30bn...

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Wed, 03/26/2014 - 12:17 | 4594126 Rakshas
Rakshas's picture

OH  PLEASE OH PLEASE ....... LET IT BE SO ........

Wed, 03/26/2014 - 12:21 | 4594147 Mr Pink
Mr Pink's picture

Most shocking part of this article......Fraudbook is worth $62 a share!! Yikes

Wed, 03/26/2014 - 12:32 | 4594173 john39
john39's picture

kids are addicted to minecraft...   this is going to leave a lasting mark on Fraudbook's ugly ass as millions minecraft fans, following the creator of their addiction, see that fraudbook is old losers...

Wed, 03/26/2014 - 12:43 | 4594225 maskone909
maskone909's picture

Funy how many cult like fb followers defend the purchase of oculus. This tech is a one way trip to bankruptcy so so lame. Virtual reality look like a fucking moron wearing that shit just like google glass. Pretty much guranteed no pussy.


This is what those buzzkill vietnam market vet doom and gloomers talk about when they say qe inspires missalocation of capital. Well that and gov spy agency subsidy. FB is no more that a department of Defense contractor.

Wed, 03/26/2014 - 12:52 | 4594281 Beam Me Up Scotty
Beam Me Up Scotty's picture

"kids are addicted to minecraft..."

Kids aren't addicted to FB anymore however.  They use Twitter now.  My 18 year old daughter hardly uses FB anymore.  Of course I counsel her all the time about not putting so much of her personal life on the net.  I think its starting to sink in.  Some day it will be old FadBook.

Wed, 03/26/2014 - 12:55 | 4594293 Fukushima Sam
Fukushima Sam's picture

Does this mean the POV anal-fisting cam developers will also part ways with Oculus?

Wed, 03/26/2014 - 21:18 | 4596763 chinoslims
chinoslims's picture

You are into that, too?  Somehow I don't feel so alone in this world.

Wed, 03/26/2014 - 13:22 | 4594402 i_call_you_my_base
i_call_you_my_base's picture

Kids were never addicted to facebook. They are addicted to talking to their friends. The vehicle doesn't matter.

Wed, 03/26/2014 - 13:34 | 4594448 Beam Me Up Scotty
Beam Me Up Scotty's picture

Correct.  And all of these advertisers that pay big bucks to FB for clicks are idiots.  Catering to kids that don't have money.

Wed, 03/26/2014 - 14:27 | 4594710 Four chan
Four chan's picture

facebook is like this centurys titanic, it's unsinkable.

Wed, 03/26/2014 - 15:49 | 4595214 waterhorse
waterhorse's picture

Will Zuckerberg be the new Molly Brown?  (retching at the thought)

Wed, 03/26/2014 - 12:53 | 4594286 Freddie
Freddie's picture


Great rant and right on target.

Wed, 03/26/2014 - 13:20 | 4594397 Dickweed Wang
Dickweed Wang's picture

kids are addicted to minecraft...

This s a perfect example of why nothing in the USA will change until people get their faces out of their hand-held devices (made in China) and lift up their heads to find out what is going on in the country and world at large.  Take their toys away and there will be a revolution within 6 months . . . . .

Wed, 03/26/2014 - 13:51 | 4594532 Matt
Matt's picture

So, you favour an authority forcing people to do things, over people choosing for themselves? You should be happy with the implementation, if not execution, of the current government then.

Wed, 03/26/2014 - 12:49 | 4594262 cossack55
cossack55's picture

Actually, FB is "priced" at $62/share.  FB is "worth" $0.62/share.

Wed, 03/26/2014 - 21:21 | 4596779 chinoslims
Wed, 03/26/2014 - 12:17 | 4594128 fonestar
fonestar's picture

Join the anti-social network... the deep web.

Wed, 03/26/2014 - 12:18 | 4594136 AccreditedEYE
AccreditedEYE's picture

Facebook will become the AT&T of the future. This is the only direction they can take and keep growing. For the record.

Wed, 03/26/2014 - 14:27 | 4594707 Canucklehead
Canucklehead's picture

Facebook will crash once everyone sees through the "new" religion.

Facebook is a social experiment to see how low mankind will go to be "liked".  Back in the day, community leadership meant ethics and achievements.  Not anymore.  Spend a couple of hundred bucks and buy "likes" to impress your "virtual friends".  What kind of life is that?

Once this is realized, who would want to be on Facebook?

Wed, 03/26/2014 - 16:20 | 4595432 dracos_ghost
dracos_ghost's picture


Never underestimate the stupidity and gullibility of mankind.

Wed, 03/26/2014 - 16:08 | 4595353 vortmax
vortmax's picture

More like the AOL/Yahoo of the future--still around, but no one can seem to agree on exactly how or why it continues to exist.

Wed, 03/26/2014 - 12:19 | 4594139 El Vaquero
El Vaquero's picture

I was tempted to reset my password (I don't even remember it anymore) and login to facebook the other day just to read the comments on one of the local PD's pages, after a fucked up police shooting that pissed off just about everybody.  I'm sure I'll be tempted again here in the near future, because there was another very questionable shooting last night, right after a large protest of the previous shooting. 

Wed, 03/26/2014 - 12:34 | 4594191 TahoeBilly2012
TahoeBilly2012's picture

I have done my last rants on Facebook, I have alienated many old High School girlfriends and gads of progressive creeps with my directness of who exactly is the major problem in our Country. This was typically after way too much alcohol. I opted for the PERMANENT ACCOUNT DELETION and in a few days (it takes 2 weeks) I will evaporate off Facebook forever. I went out with my boots on and used it for the only thing I saw it useful for.

Wed, 03/26/2014 - 12:38 | 4594212 El Vaquero
El Vaquero's picture

I haven't logged in for what I'm guessing is 1 1/2 - 2 years. 

Wed, 03/26/2014 - 13:07 | 4594349 Texas Ginslinger
Texas Ginslinger's picture

I haven't logged into Zero Hedge for 2 1/2 years.

What have I missed?

Wed, 03/26/2014 - 14:45 | 4594842 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I haven't logged into Zero Hedge for 2 1/2 years.

What have I missed?

Lot's of good journalism and good comments TG.

Wed, 03/26/2014 - 12:59 | 4594317 Downtoolong
Downtoolong's picture

Two weeks to close an account speaks volumes about the real mindset of the people who run these companies and their attitude towards their customers. It's all about their first, second, and third priorities before they even start to think about what their actions mean to you. They're not nearly as much about social networking as they are about social engineering and establishing social power and control.

Wed, 03/26/2014 - 14:07 | 4594612 duo
duo's picture

Facebook is only useful around high school reunion time.  And for finding old girlfriends (or them finding you).

Wed, 03/26/2014 - 15:13 | 4594982 29.5 hours
29.5 hours's picture



I did the Facebook "permanent account deletion" about 3 years ago and I still get crap from FB, almost daily, about unread notices from other accounts and a friendly reminder that I can easily renew my [dead, non-existing, permanently deleted] account by logging in...




Wed, 03/26/2014 - 15:38 | 4595147 fishwharf
fishwharf's picture

Yes, I was flooded with crap frpm FB for a long time until I started marking everything from them as spam.  It worked.

Wed, 03/26/2014 - 12:52 | 4594280 rtalcott
rtalcott's picture

"...comments on one of the local PD's pages, after a fucked up police shooting..."



Wed, 03/26/2014 - 12:56 | 4594301 Freddie
Freddie's picture

Was this where  they assasinated a homeless guy with a tent in ABQ?   I guess cops are moving beyond shooting citizens dogs, doing nothing and bothering no one, in their own yard.

Wed, 03/26/2014 - 12:57 | 4594303 El Vaquero
El Vaquero's picture

Yessir.  I'm not actually in Abq, but I'm close enough that APD is the department that I am most likely to interact with should I have to interact with police.  (It won't be voluntary.)  With the latest one, police are saying he came out with a gun and shot at police.  Witnesses are saying he came out while he was on the phone with his sister, and when he saw the cops, he dropped the phone and they shot him.  There's a grainy video that, while impossible to tell for sure, does look like he is in fact, on the phone.  I await the lapel cam videos, because APD is required to wear them because they have now killed (not just shot, but killed) 23 people since 2010.

Wed, 03/26/2014 - 13:03 | 4594328 rtalcott
rtalcott's picture

I live in ABQ...been here for 10+ years...I thought Rochester NY had cop shooting problems...APD is amazing...I have had one interaction with APD...was walking to the coffee shop early in the morning and was stopped...interrrogated for no good reason...it's a zoo here...the corruption is so obvious...I feel safer in Juarez.

Wed, 03/26/2014 - 13:09 | 4594353 El Vaquero
El Vaquero's picture

And it is not the criminals that scare you, I bet. 

Wed, 03/26/2014 - 13:14 | 4594369 rtalcott
rtalcott's picture

A BIG X IV on that...


came down here to try to start a high tech business figuring with the Labs + University there would be  aLOT of talent and drive to DO things..but it's jsut the opposite...what a sinkhole for $$$$...nothing but white collar welfare.

Wed, 03/26/2014 - 13:52 | 4594536 El Vaquero
El Vaquero's picture

I don't think that APD has a clue what kind of people are actually starting to take notice and get pissed off at them.  They aren't the type to protest.  This shit will come to a head if they don't change.  They are abusive and trigger happy, and no matter what, according to them, they can do no wrong.

Wed, 03/26/2014 - 14:48 | 4594868 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I went to college in NM and remember hearing stories of APD. Typically, they were beatings with no provocation just to terrorize the citizens. Not too far from Mexico down south.

Looking at the vatos in ABQ, if I was a cop I think that would become anyone just trying to survive there. One reason why I no longer live in NM. 

Wed, 03/26/2014 - 15:10 | 4594972 El Vaquero
El Vaquero's picture

Eh, for the most part, the vatos leave me alone or even get along with me.  On the two occasions that they didn't, realizing that I do not play fair was all it took.  You have to have a certain mentality to get along here, and it seems to be night and day between how those who have it and those who don't are treated.  I've had family here since before it was a state, so it's safe to say that I don't fit in elsewhere. 

Wed, 03/26/2014 - 12:21 | 4594145 ebworthen
ebworthen's picture

"Facebook creeps me out."

Me too.  http://m.mobiledia.com/news/189649.html

Wed, 03/26/2014 - 12:52 | 4594279 Spastica Rex
Spastica Rex's picture


Ersatz life - it's made out of electrons, only.

Wed, 03/26/2014 - 12:21 | 4594146 toxic8
toxic8's picture

Sony's VR model is looking all the better now. Very dissappointed in Oculus

Wed, 03/26/2014 - 12:21 | 4594149 orangedrinkandchips
orangedrinkandchips's picture

Fads, fads, fads


Remember "my buddy"?? Whereever he goes, I go!



Wed, 03/26/2014 - 12:46 | 4594247 maskone909
maskone909's picture

Remember my baby all gone? He makes it all gone.
Teaches young broads to change diapers and stuff. Lmfao

Cant remember the name of that weird glow n the dark game thhing... Never got one man im pissed

Wed, 03/26/2014 - 12:22 | 4594152 Smiley
Smiley's picture

Rebel:  Read books and write letters on paper.

Handwriting is the new encryption for the 21'st century.

Wed, 03/26/2014 - 12:37 | 4594209 TheReplacement
TheReplacement's picture

If you mean in cursive you are probably spot on.

Wed, 03/26/2014 - 13:32 | 4594437 Mentaliusanything
Mentaliusanything's picture

@ Smiley.. you are spot on. I wrote a 4 page letter to a woman I care a lot about, but when she recieved it, sent me a text.

it read... WTF do  i do with this? 

I said in the return text

write me back

reply was.... That is way to much depth and bother for me. just fucking text me.

no wonder sex was a 60 second item with her

Wed, 03/26/2014 - 12:23 | 4594155 Tenshin Headache
Tenshin Headache's picture

As any Federal Reserve governor could tell you, they just need to print more.

Wed, 03/26/2014 - 12:24 | 4594158 Agent P
Agent P's picture

My wife is constantly on facebook and my oldest son is constantly on minecraft.  I wish I could part ways with both...software platforms that is...I like my wife and kids...well, my kids at least.  

Wed, 03/26/2014 - 12:38 | 4594215 TheReplacement
TheReplacement's picture

That's ok.  I like your wife just fine for you when you are at work ;)

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