Facebook Purchases Oculus Rift Virtual Reality for $2 Billion.
Facebook seems to continue extending its visions with provide social media and entertainment while taking it into a digital world with its recent announcement of having acquired virtual-reality headset maker Oculus VR in a deal worth up to $2 billion.
This deal comes up right after Facebook had announced its purchase of mobile messaging company WhatsApp last month, for over $16 billion, plus $3 billion in stock stakes.
The Oculus Rift virtual-reality headset was originally designed to work for videogames, But it seems that Facebook has even bigger plants to extend the Oculu headset into other areas, which include communications, media, entertainement, and education as well. Founding in 2012, Oculus has said to have received over ore than 75,000 orders for development kits for their VR system.
“Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow,” Facebook founder and CEO Mark Zuckerberg said in announcing the deal. ”Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate.”
Oculuis will continue to maintain is headquarters in Irvine, and will continue the development for the Oculus Rift, Augmented reality headseat. The deal is expected to be closed sometime during the second quarter of 2014.
The terms for the deal are, Facebook will purchase Oculus for over $400 million in cash, and 23.1 million shares of Facebooks common stock, which has been said to be valued over $1.6 million, based on the average closing price of the 20 trading days preceding March 21. The agreement will also provide an additional $300 million earn-out in money and stock based on the milestone performance.
“At first glance, it might not seem obvious why Oculus is partnering with Facebook,” Oculus founder Palmer Luckey, CEO Brendan Iribe and CTO John Carmack wrote in ablog post. “But when you consider it more carefully, we’re culturally aligned with a focus on innovating and hiring the best and brightest; we believe communication drives new platforms; we want to contribute to a more open, connected world; and we both see virtual reality as the next step.”