Just a few days after the announcement of Sony’s VR Headset Project Morpheus, Virtual Reality Market leader Oculus is sold to Facebook. While it might look totally irrelevant to see Facebook buying Oculus – what a social network website has to do with (Gaming) Virtual Reality headset – but still Facebook has done it by acquiring Oculus for a whopping $2 Billion.
Facebook Press Release reveals the details of this Facebook-Oculus deal clearly,
Facebook today announced that it has reached a definitive agreement to acquire Oculus VR, Inc., the leader in immersive virtual reality technology, for a total of approximately $2 billion. This includes $400 million in cash and 23.1 million shares of Facebook common stock (valued at $1.6 billion based on the average closing price of the 20 trading days preceding March 21, 2014 of $69.35 per share).
Facebook CEO Mark Zuckerberg also expressed his happiness about the acquisition in his FB post and an excited user commented below the same post,
“Mark please don’t buy my bed now thank you“
and got more 8000 likes for it.
Well, As far as we’ve seen Facebook isn’t behaving like Yahoo! which at the helm of Marissa Mayer has acquired a lot of start-ups but almost buried them in Graveyard because Facebook has made a lot of improvements in Instagram including the most recent overhaul – Instagram Video – which promises us that Oculus is in safe hands where it can become bigger and bigger with the resources that Facebook has. The same is reflected in Oculus’s blog post too that says
At first glance, it might not seem obvious why Oculus is partnering with Facebook, a company focused on connecting people, investing in internet access for the world and pushing an open computing platform. 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.
We can’t say that it’s Sony Morpheus effect but we can’t deny the fact that Oculus might have been afraid of the Japanese Giant, in either way, $2 Billion deal is not a bad one at all for Oculus. And for Facebook this is a huge deal, Since the company went public, it has been striving for revenue sources and part of that quest is Instagram ($1 Billion) and Whatsapp ($16 Billion) acquisition and those are yielding now so Facebook might hope the same from Oculus too as Facebook CEO said,
“Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate.”