Published - September 6, 2022 @ 4:46 PM (EET)
Facebook parent Meta Platforms Inc. (NASDAQ:META) said it has acquired Lofelt, a Berlin technology startup with about 25 employees aiming to replicate the illusion of touch in virtual reality.
As the tech giant expands its footprint in the Metaverse space, the buyout, which was concluded a few weeks ago but only made public on Friday, has grabbed the market's attention.
Just a couple of days ago, the Federal Trade Commission (FTC) refrained Meta Platform's Chief Executive, Mark Zuckerberg, from buying virtual-reality studio Within Unlimited, emphasizing its legal battle with the FTC over its push into virtual-reality technology.
Instead of "competing on the merits," the FTC believes that "Meta is trying to buy its way" and use its financial might to dominate the industry.
A Meta spokesperson said, "We're excited that members of the Lofelt team have joined Meta."
While financial terms of the buyout have not been disclosed, a June filing describes Meta as Lofelt's sole shareholder.
WHY IT MATTERS
Zuckerberg's big bet is to evolve Facebook's social network into a next-generation 3D virtual-reality and mix-reality platform, known as the metaverse. Through its expansion, the $431 billion tech behemoth has developed Horizon Words, Meta Avatars Store, and Quest 2 VR headsets.
With the latest acquisition of Lofelt and the company's haptic technology via Lofelt Studio, Meta could build devices that give users a more immersive illusion of being in the virtual world and "augment the experience even further."
Before Meta acquired the company, Lofelt had announced that it was working with Qualcomm Inc. (NASDAQ:QCOM) to improve haptic technology on devices running Google's Android mobile operating system.
In a statement, Zuckerberg said Meta and Qualcomm signed a partnership on Friday to create chipsets for "future VR headsets and other devices."
PRICE TARGET: Based on analysts' ratings tracked by TipRanks, Meta Platforms stock could be an attractive investment option.
Currently, META stock has 27 Buy ratings, 5 Hold ratings, and two Sell ratings. The average price forecast of $224.21 implies an upside potential of 39.85% from current levels.
