WikiFX report: Is Facebook Ready To Buy A Major Gaming Stock?

Facebook‘s transition into Meta Platforms FB+ Free Alerts and Mark Zuckerberg’s big push into the metaverse — the concept of a shared 3D virtual platform where people can socialize, work, and play — spurred a sector-wide move by tech companies to branch out into other areas like gaming.

The burgeoning gaming industry has transformed into a $198.4 billion sector in 2021, far exceeding the combined market size of the box office and the music industry, according to market research firm Mordor Intelligence.

A sharper focus on gaming would encourage Facebook to double down on its investments in the gaming sector far beyond hardware and building a metaverse.

Meta and VR gaming

Even before Meta announced its push into the metaverse in October 2021, the social media behemoth has built a presence in the gaming market with its acquisition of virtual reality company Oculus in 2014.

Meta‘s foray into the metaverse would make its Oculus VR headsets more appealing to the market amid strong competition against other VR headsets in the market like HTC’s (TPE:2498) HTC Vive and Sonys (NYSE: SONY) PlayStation VR.

A sharper focus on gaming would encourage Facebook to double down on its investments in the gaming sector far beyond hardware and building a metaverse. The company, which also owns Instagram and WhatsApp, could soon build an army of tech talents that specialize in gaming.

Which gaming studio is Facebook eyeing？

With Meta‘s intentions to promote the metaverse concept, industry watchers are now waiting for the company’s next big move. Meta will likely look to gobble up a gaming studio with a massive presence in the market such as Frances Ubisoft (OTCMKTS: UBSFY), the developer behind Assassin's Creed and Prince of Persia. Ubisoft CEO Yves Guillemot last month hinted that it is open to offers from companies.

Roblox (NYSE: RBLX), Playtika Holding (NASDAQ: PLTK) and Super League Gaming (NASDAQ: SLGG) are also likely targets if Meta chooses to snap up the bargains on these companies after their shares tumbled to near record lows recently.

In June 2021, Meta bought Unit 2 Games, the studio behind Roblox-like gaming platform Crayta.