Facebook Acquires Virtual Reality Technology Firm Oculus VR Approximately For $2 Billion

Facebook today announced plans to acquire virtual reality technology firm Oculus VR for approximately $2 billion



Facebook seems to be in an acquiring spree and the price tag starts from billion in 2014. In a recent development, Facebook  announced plans to acquire virtual reality technology firm Oculus VR for approximately $2 billion. The price includes $400 million in cash and 23.1 million shares of Facebook common stock (valued at $1.6 billion based on the average closing share price of $69.35), reports TNW.

The reason for the “approximately” is not just because of the changing price of shares. The agreement, which is expected to close in the second quarter of 2014, also includes an additional $300 million earn-out in cash and stock based on the achievement of certain milestones, so the $2 billion price tag could indeed end up being much higher or lower.

With this acquisition, Facebook, which is in a mission to make the world more open and connected, enters the world of virtual reality hoping it to be the next platform after desktop and mobile.

Oculus VR, the company known to make the Oculus Rift, a virtual reality headset mainly used for 3D gaming was founded by Palmer Luckey, Brendan Iribe, Michael Antonov, and Nate Mitchell.

Oculus VR co-founder and CEO Brendan Iribe said that they 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.”

Mark Zuckerberg, who is quite excited about Oculus VR, the leader in virtual reality technology, stated on Facebook that while the company is focused on mobile and how communications develop on the platform, it is also time for Facebook to start focusing on what platforms will come next to enable even more useful, entertaining and personal experiences.

This is where Oculus comes in. They build virtual reality technology, like the Oculus Rift headset. When you put it on, you enter a completely immersive computer-generated environment, like a game or a movie scene or a place far away. The incredible thing about the technology is that you feel like you’re actually present in another place with other people. People who try it say it’s different from anything they’ve ever experienced in their lives.

While Mark states that Oculus would keep focusing on what they are good at doing right now but over time Oculus would turn into a platform for many other experiences. Mark adds,

Imagine enjoying a court side seat at a game, studying in a classroom of students and teachers all over the world or consulting with a doctor face-to-face — just by putting on goggles in your home.

This is really a new communication platform. By feeling truly present, you can share unbounded spaces and experiences with the people in your life. Imagine sharing not just moments with your friends online, but entire experiences and adventures.

With the Oculus acquisition, Mark is determined to make immersive, augmented reality a part of daily life for billions of people.

Image courtesy: YouTube