Facebook Set to Buy Oculus Virtual Reality Company for $2 Billion
by Haylee Fisher (@haylee_fisher)
Facebook has announced intentions to buy Oculus Virtual Reality, the company behind cutting-edge video game headset Oculus Rift, for $2 billion. The deal was revealed via a blog post yesterday.
The acquisition includes $400 million in cash and $1.6 billion in Facebook stock, plus an additional $300 million if Oculus meets certain performance targets.
Facebook CEO Mark Zuckerberg said Facebook will “focus on helping Oculus build out their product and develop partnerships to support more games.” He said when the company reaches its goals, Facebook will help them expand into new territories. Zuckerberg views Oculus as a new communication platform and hopes to extend it into a world beyond gaming. He said the company “has the chance
to create the most social platform ever, and change the way we work, play and communicate.”
Oculus is equally as thrilled. In a press release, they said, “We are excited to work with Mark and the Facebook team to deliver the very best virtual reality platform in the world. We believe virtual reality will be heavily defined by social experiences that connect people in magical, new ways. It is a transformative and disruptive technology that enables the world to experience the impossible, and it’s only just the beginning.”
This is an impressive deal to buy a company that is actually yet to release a product to the public. The Oculus Rift was first introduced in 2012 at E3 and later that summer, Oculus launched a Kickstarter campaign that eclipsed its $250,000 funding goal nearly ten times over. Since then, they have raised more than $90 million in venture funding and 75,000 people have ordered developer kits to test the Oculus Rift and begin making software for it. However, a version of the headset for the general public has not yet been produced and Facebook did not provide any information on when that may happen.
What are your thoughts on the purchase? Do you think it’s a good idea or do you think Facebook is too inexperienced in the gaming world to know how to handle such innovative technology?