Facebook Buys Oculus VR for $2 Billion- The Reasons

Topics: Virtual reality, Mark Zuckerberg, Facebook Pages: 5 (1788 words) Published: April 5, 2014
Facebook Buys Oculus VR for $2 Billion- The Reasons
Zuckerberg acquires the virtual reality company with high hopes for the technology Facebook as a social network is equally valued and criticized. It’s true that no company other than Facebook has connected us together the way that we have been connected in the past decade but many criticize the social network it actually isolates people rather than brings them together. Logging into Facebook account and scrolling through the News Feed is not the same as talking and laughing with a friend in person. Facebook envisions a world where it could make you feel like you’re right next to the people you love, no matter how far away they are, you feel as if you are hanging out with your friends or loved ones rather than staring at their photos and videos online. To fulfill that vision, the company announced on Tuesday that it had entered into a $2 billion deal to buy Oculus VR, the maker of Rift virtual reality headset. Commonly associated with science fiction, Virtual reality technologies make you feel that you are physically present in a digital world. Facebook announced Tuesday that it acquired Oculus VR, the company behind the Oculus Rift gaming headset in a cash and stock deal valued at $2 billion. With the purchase of Oculus VR, Facebook is hoping that the technology will help eventually turn social networking into an immersive, 3-D experience. Facebook is paying $400 million in cash and about $1.6 billion in stock for Oculus. An additional $300 million earnout will be paid in cash and stock if depending on Oculus’s performance. Facebook announced its surprise purchase via a blog post. CEO Mark Zuckerberg revealed Facebook's reasons for the deal. "Oculus's mission is to enable you to experience the impossible. Their technology opens up the possibility of completely new kinds of experiences.” "Oculus has the potential to be the most social platform ever and change the way we work, play and communicate," Facebook CEO Mark Zuckerberg said in a statement. Expanding his explanation, in his Facebook post, Zuckerberg says: "Our mission is to make the world more open and connected. For the past few years, this has mostly meant building mobile apps that help you share with the people you care about. We have a lot more to do on mobile, but at this point we feel we're in a position where we can start focusing on what platforms will come next to enable even more useful, entertaining and personal experiences." This is where Oculus comes in. They build virtual reality technology, like the Oculus Rift headset. When you put it on, you enter a completely immersive computer-generated environment, like a game or a movie scene or a place far away. The incredible thing about the technology is that you feel like you’re actually present in another place with other people. People who try it say it’s different from anything they’ve ever experienced in their lives. The purchase is expected to close in Q2 of 2014. Facebook’s deal came as a surprise, because Oculus, a small start-up that has not yet shipped a product to the broader public. Though the company has sold more than 75,000 kits to game developers, interested in playing around with VR technology — and the early prototypes we've seen look amazing. Oculus Magic

Starting out as a breakout Kickstarter success, Oculus Rift evolved into something much more: The company became the face of the future of virtual reality. Oculus Rift, the headset Oculus VR is developing, is intended for playing games, watching movies, and ultimately interacting with people both near and far dramatic purposes. The boxy set of goggles, envelops the eyes of its wearers, completely surrounding their field of view with high-resolution screens that create 3-D images. Motion sensors in the headset track the movement of a person’s head, shifting their view on the screen and creating the feeling that the wearer has an active presence in a virtual world. The company's...
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