Facebook Enters Virtual Reality Technology Market, Acquires Oculus For $2 billion

Mark Zuckerberg has yet again packed a punch with his futuristic vision of taking the social networking experience to an altogether different level. If news from the social networking giant are to be believed, it is leaving no stone unturned to make social networking a realistic experience.

Facebook has announced the acquisition of Oculus, a leading virtual reality company for approximately $2 billion. The deal includes $400 million in cash and 23.1 million shares of Facebook common stock. The deal is ‘approximate’ as it includes additional $300 million ear-out in cash and stock based on the achievement of certain milestones.

Having started from a $250 Kickstarter project to $2B exit in less than two years, Oculus has received  over 75,000 orders for development kits for its virtual reality headset – Oculus Rift. Facebook aims  at expanding Oculus’ presence in gaming to prospective avenues like communications, media and  entertainment, education and other areas.

Virtual reality technology is hailed to be the next bet as ‘the emerging social and communications platform’. Post-acquisition of 450 million mobile users of Whats App, Mark intends to streamline his efforts on the  future of technology. He quotes,

“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 voiced his delight by quoting,

 “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 , however, will maintain its headquarters in Irvine, CA and continue with the development of its virtual reality platform known as Oculus Rift.