Here’s a nugget from Brenden Iribe, the CEO of Oculus VR, the virtual reality company Facebook bought for $US2 billion.
He spoke last week at a conference about how the Facebook deal came together. Fortune reporter Erin Griffith wrote up some of his quotes.
Iribe says he met with Mark Zuckerberg, and got along well with him. Zuckerberg told Iribe that Facebook would have the resources to help expand Oculus into a bigger company.
However, Iribe said “the number wasn’t quite there,” meaning the price Zuckerberg was willing to pay. “We did have a pretty big number in mind for a 20-month-old company,” he said.
So, nothing happened between the two companies. When Facebook paid $US19 billion for WhatsApp, Iribe said we “started to believe in our number a little more.”
In other words, he saw that Facebook is willing to pay a big price for a company it really wants, so he felt secure holding out, even though his company was less than 2 years old.
If this is what other companies think, it’s sort of bad for Facebook. Zuckerberg is getting a reputation of being a free spender, which means companies will hold out for their pay day.
But, it’s not all bad. It means all startups will be a little bit more expensive for all companies. Google, Apple, Microsoft, or whoever will have to pay up for any company that might be appealing to Facebook.
Business Insider Emails & Alerts
Site highlights each day to your inbox.