Facebook Pays $2 Billion to Buy Virtual Reality Headset
Published on: 26th Mar 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
Another week and another multi billion dollar deal by Facebook which has just announced that it is paying around USD2 billion to buy the virtual reality developer Oculus VR.
Oculus is a developer of virtual reality technology and has already built strong interest among developers, having received more than 75,000 orders for development kits for the company's virtual reality headset, the Oculus Rift.
The price is made up of USD400 million in cash and USD1.6 billion in shares. The agreement also provides for an additional $300 million earn-out in cash and stock based on the achievement of certain milestones.
"Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow," said Facebook founder and CEO, Mark Zuckerberg. "Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."
Oculus will maintain its headquarters in Irvine, CA, and will continue development of the Oculus Rift, its virtual reality platform.
Facebook said that it plans to extend Oculus' existing advantage in gaming to new markets. However, the deal has already provoked one backlash, as the head of Minecraft said that he was cancelling plans to develop a verion for Oculus.
He said in a tweet that Facebook "creeps me out".