Facebook to Buy Virtual Reality Headset Maker for $2 Billion
On March 25, 2014, Facebook announced its plans to purchase Oculus VR, the company responsible for the virtual reality headset known as Rift.
The deal, worth roughly $2 billion, includes about $400 million in cash with the rest to be paid out in Facebook shares. An additional $300 million in cash and stock will be included in the deal based on how well Rift does, but information regarding the specific details of the contract were not included in Facebook's public statement.
If that seems like a lot of money for something you didn't even know existed, you're not the only one. That’s because the deal has largely come as a surprise since Oculus is a relatively small start-up and hasn’t even shipped its product to the general public. That notion, in addition to the belief that the Oculus Rift is technology aimed at hard-core video gamers, has caught many people off guard.
However, cofounder of Facebook Mark Zuckerberg conveyed his plans for the technology in a post on his social networking site. “Imagine enjoying a courtside 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,” he says.
Although many in the tech industry are intrigued that Oculus will allow users to see a reality on a virtual plane, not all proponents of the technology see eye to eye with Facebook’s purchase of the company.
Swedish game programmer Markus Persson, creator of the video game Minecraft, voiced his displeasure with the move with a tweet from his personal account. “We were in talks about maybe bringing a version of Minecraft to Oculus. I just canceled that deal. Facebook creeps me out,” read Persson’s tweet.
Industry experts and economists are shocked and share mixed opinions of the proposed transaction. James McQuivey, an analyst for Forrester Research, viewed the proposed buyout as a bad move, claiming that “the fit is so poor.” He adds that Facebook could have avoided the large price tag and instead “could easily have done some kind of partnership.”
The Oculus Rift may allow users to see onto virtual 3-D planes, but no one can see into the future. Only time will tell what Facebook's acquisition of Oculus will mean for the future of both the social network and how we use technology.
