Facebook Acquires Oculus VR
Posted by Joseph Lee on 03.26.2014
For $2 billion...
Coming Soon reports that Facebook has acquired Oculus VR, Inc for around $2 billion ($400 million in cash and 23.1 million shares of Facebook common stock, valued at $1.6 million*). The agreement also includes $300 million in cash and stock based on hitting certain goals.
Oculus has drawn interest from developers, with over 75,000 orders for development kits for the virtual reality headset, the Oculus Rift. The applications of VR technology outside of gaming are just in the early stages, but several industries are exploring its uses. Facebook will use Oculus for communications, media and entertainment, education and other areas. It could become the new platform for social and communications.
Facebook founder and CEO Mark Zuckerberg said: "Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow. Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."
Brendan Iribe, co-founder and CEO of Oculus VR, added: "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."
Oculus will continue to operate in Irvine, California and continue developing Oculus Rift. The deal will close in the second quarter of this year.
* Based on the average closing price of the twenty trading days before March 21, 2014 of $69.35 per share.