Munster: This may be FB’s next takeover target

THIS paradigm shift is behind upgrading Facebook: Analyst

If Facebook wants to make an acquisition, it should look at virtual reality start-up Magic Leap, a tech analyst said on Thursday.

Magic Leap is a private company, backed by Google, which specializes in virtual reality and what it calls the "cinematic reality."

"It [Magic Leap] is probably the most important private company in the tech world right now," Gene Munster, Piper Jaffray senior research analyst and Facebook bull, told CNBC's "Fast Money: Halftime Report."

"I think that would be a many-billion dollar acquisition, but I could see something like that make a ton of sense for where they [Facebook] are going, longer term."

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Munster said that Magic Leap's technology could power the future displays of the Oculus Rift. Oculus VR is the virtual reality technology company acquired by Facebook last year.

"This Oculus Rift is going to change how investors think about the entire theme and have an impact on Facebook's [stock] multiple. So if you have the patience to own something for three months, and wait until this comes out, I think you are going to be paid handsomely," he said.

The Oculus Rift, a virtual reality head display, is scheduled for release in the first quarter of 2016.

Mark Zuckerberg, chief executive officer of Facebook Inc.
Facebook earnings: 57 cents per share, vs expected 52 cents

Jaffray said that virtual reality could become the new paradigm in computing over the near-term future.

"What [Mark] Zuckerberg sees here is a shift away from phones and computers and displays and to a new way that we interact," he said. "It sounds absurd but let's talk in 10 years and see where things are at, and I think there is going to be a profound change in how investors think about this theme in the next few months."

Disclosures: Neither the analyst nor his firm owns shares of Facebook. However, Piper Jaffray makes a market in the securities of Facebook.