Facebook Purchases Oculus VR For $2 Billion USD
March 25, 2014 7:06 PM
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Facebook plans to do more than just gaming
Facebook is stepping into the virtual gaming world through a recently announced purchase of
, Facebook is buying Oculus VR for $2 billion USD in cash and stock. A breakdown looks more like $400 million in cash and 23.1 million shares of Facebook common stock.
Oculus VR is an Irvine, California-based startup that was founded by Palmer Luckey. The company launched a Kickstarter campaign to help fund development of their first product -- the Oculus Rift -- which is a virtual reality headset for immersive gaming. The Kickstarter campaign reached over $2.4 million in funding.
While Facebook has seen a lot of success with games like "FarmVille," the social giant said it plans to do more than just virtual gaming with the company.
"After games, we're going to make Oculus a platform for many other experiences," said Facebook CEO Mark Zuckerberg. "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."
Oculus VR doesn't have a consumer version of its Oculus Rift yet, but it's available for developers at the moment.
The Oculus Rift headset makes you feel like you're in the gaming environment, taking video games to a whole new level of feeling "real" beyond just graphics on your TV and movements with a controller.
At the Consumer Electronics Show (CES) 2014, the Oculus Rift "Crystal Cove" prototype was named Best of CES 2014.
"We are excited to work with Mark and the Facebook team to deliver the very best virtual reality platform in the world," said Brendan Iribe, co-founder and CEO of Oculus VR. "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 keep its headquarters in Irvine and continue development of the Oculus Rift. The transaction with Facebook is expected to close in the second quarter of 2014.
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Those poor people who donated..
3/26/2014 1:04:56 PM
This is exactly why I never donate to crowd funded projects. Remember that Oculus started off as a crowd funded venture. So by selling out to FB, they basically used the crowd money and made them selves billionaires..
RE: Those poor people who donated..
3/26/2014 5:29:06 PM
I don't really see the problem. In regular venture capital funding, you give them money in exchange for part ownership and/or control of the company.
In crowd funding, you give them money in exchange for a product or special perk when the product comes out. As long as you get exactly what you were promised, what's the problem? If you wanted partial control of the company to prevent it from selling out to FB or the likes, or partial ownership so you could've had part of the $2 billion pie, you should've asked for that and withheld your money when they refused.
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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