[jcnnghm]

Diversification at the corporate level isn't a good idea. Investors typically demand a discount (the conglomerate discount) for diversified corporations because they can easily diversify themselves by holding a variety of securities. Imagine an investor that values social networks highly, but who doesn't care for VR. They'll view this as a distraction from the core business, leading to a discount of the core business and an even greater discount of the VR portion. Diversification makes companies harder to analyze and reduces management focus, and has the tendency to depress both earnings and value.

There are some exceptions around market inefficiency, for example in the case of emerging markets where companies are difficult to manage and finance, but those are becoming less common, not more. I think there may be an argument that the market inefficiency caused by the extra reporting requirements imposed by SOX is causing more companies to go public by way of acquisition instead of IPO, but I haven't really seen clear data on that point.