Facebook Buys Oculus VR for $2 bln

Facebook - April 3rd, 2014

It seems Facebook is on a shopping spree after acquiring the messaging app, WhatsApp for $19 billion. In yet another big acquisition, Facebook has taken over Oculus VR Inc., the maker of virtual reality gaming headset Oculus Rift, for approximately $2 billion. The cost includes $400 million in cash and 23.1 million shares of Facebook common stock, valued at $1.6 billion. 

The second acquisition from Facebook comes as a surprise to many in the gaming industry. Earlier in 2012, Oculus had created a stir in the industry following the demonstration of Oculus Rift. The official Facebook blog says that Oculus had received more than 75,000 pre-orders for second-generation development kits for the headset. The kits, priced at $350 apiece, are ready to be shipped in July.

 According to Mark Zuckerberg, CEO of Facebook, Oculus has the potential to create the most social platform ever and change the way we work, play and communicate. “We’re going to focus on helping Oculus build out their product and develop partnerships to support more games. Oculus will continue operating independently within Facebook to achieve this,” he said.

 Zuckerberg further explained that initially their efforts with Oculus will be focused on gaming, after which they will expand into a variety of other arenas. With this acquisition, Facebook plans to extend Oculus’ existing advantage in gaming to new verticals, including communications, media and entertainment, education and other areas. 

It is anticipated that with the support and resources from Facebook, Oculus will do wonders with the Rift, which is still in beta testing, and many other innovative products.



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