Technology stocks were lower with shares of technology companies
in the S&P 500 retreating about 0.9% near the close.
In company news, Facebook (
) stock fell Wednesday after the social networking company late
yesterday announced a deal to acquire an immersive virtual reality
technology company for $2 billion in cash and stock.
The deal calls on FB to pay $400 million in cash for privately
held Oculus VR, which developed a virtual reality headset for
immersive gaming. FB also will issue around 23.1 million shares of
its stock worth about 1.6 billion, based on the stock's average
closing price of $69.35 over the past 20 trading days.
The agreement also provides for an addition $300 million
earn-out in cash and stock for Oculus as it achieves certain
Wall Street response to the deal was somewhat muted, with Credit
Suisse the only analyst shop to weigh in on the purchase, Wednesday
reiterating its Neutral rating for the stock.
FB shares last traded at $61.14, down 5.8%. the stock has a
52-week range of $22.67 to $72.59 a share.
In other sector news,
(+) YOKU, Tencent reportedly will pay over $300 mln to purchase
a 20% stake in the Chinese Internet television company, according
to an article in Marbridge consulting, citing a source close to
(-) XGTI, Registers to sell up to $11.5 million of its common
stock in an underwritten public offering. Net proceeds will be used
for general corporate purposes.
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