still with us here is george zachary. want to start with a tweet you sent as soon as this happened -- i believe this deal will have the same impact as yahoo!'s acquisition of geocities in the 90's. basically people get richer, but not the world. what do you mean? >> the oculus rift is the rift between $2 billion and something of value. i worked in a company who coined the term virtual reality in 1989. set about this? >> he says is not really going to change anything. all of us who worked together at the pl knew there were certain problems unsolved i commercial companies as well as the military. one of them has to do with the fact the human brain has evolved for your eyes and ears to be correlated in motion. motion sickness is when your ears are moving but your -- your years are picking up motion but your eyes are not. there's a single simulator sickness where your eyes are detecting motion but your ears or not. sense ofn can't make what's going on and no one has figured out how to fix it. >> you say our brains are not rea

george zachary invested in twitter.hem aboutby asking the types of sacrifices that companies like twitter have to make. >> companies tend to keep the based on a smaller demographic. there are a lot more tech workers on the peninsula. you are kind of self-selecting for a certain group of people. that is what i see recurring over and over. i feel like there is this adoption of technology in a much broader way. [indiscernible] it's about consumer facing tech and a broader adoption tech. >> if you look from san jose to san francisco, you will see the stack of what is the internet. systems, enterprise software, consumer applications. ibm is sort of further south and -- >> enterprise software. oracle. haved moving up, we consumer business things like twitter. of theexperience internet now is a consumer phenomenon in addition to an infrastructure phenomenon. it is natural it will take place in cities where there are more consumers and people attuned to daily life. >> you think that companies >> id be doing more gekko don't hav

some think the acquisition was not really worth it third i spoke about the deal with george zachary. what he has to say. rift is the rift between $2 billion and something of value. we coined the term virtual reality in 1989. about this?he said >> his perspective is that it will not really change anything. all of us that worked together at bpl, we knew there were certain problems that were unsolved by commercial companies as well as the military. one of them had to do with the fact that the human brain has evolved for your eyes and ears to be correlated in motion. for example, motion sickness is when your ears are moving but your -- or your ears are picking up motion, but your eyes are not. it is simulator sickness we are issa tech motion but your ears are not. your brain cannot make sense of what is going on. no one can figure out how to fix this. >> you're saying our brain is not ready for virtual reality. >> it is ready for augmented reality. they're not really ready for this form of entertainment. did mark zuckerberg byatt? >> i think he did note is buying, number one. then he cut

that was george zachary. do you think we are in a tech bubble? >> there are some valuations that are impossible to defend and there are some great deals out there. leslie makes a great point. there have been some enormous valuations applied when large public tech companies use their expensive stocks to make acquisitions. what we see happening is when the expensive bid up stocks like facebook are used to make somewhat outlandishly valued acquisitions, it has a ripple effect that pushes up the ua shins. -- pushes up valuations. valuations are consistent with strong growth stories that are attached to better names but maybe not stratospheric on all the names and not quite as stretched in the first few months of 2014. big companies using their stock to make ridiculous acquisitions -- facebook does not come to mind at all. >> certainly not. >> if you are a private company with a startup ceo and you see the public markets reacting like this, should you ignore it? what lessons might we have from the past? should you change your capital allocation plan?