Today the biggest social media company bought out the potentially biggest name in virtual reality. Facebook placed a bet on VR and company Oculus VR, the approximate amount was $2 billion in cash and stock, with an additional $300 million depending on the Oculus performance.
Under the terms of the acquisition, Facebook will pay Oculus VR $400 million in cash, and the rest will be paid in 23.1 million shares of Facebook stock, which is currently closing at $64.10.
Facebook founder Mark Zuckerberg said when announcing the deal, "Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow, Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."
On Facebook, Zuckerberg makes note that there is more than gaming in mind for Oculus' technology. AR, or augmented reality could be a part of life for billions of people.
Zuckerberg said, "After games, we're going to make Oculus a platform for many other experiences, Imagine enjoying a court side 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 continues on to say that, "This is really a new communication platform. By feeling truly present, you can share unbounded spaces and experiences with the people in your life. Imagine sharing not just moments with your friends online, but entire experiences and adventures."
"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." announced The Oculus management team.
They continue on to say that "This partnership is one of the most important moments for virtual reality: it gives us the best shot at truly changing the world," they said. "It opens doors to new opportunities and partnerships, reduces risk on the manufacturing and work capital side, allows us to publish more made-for-VR content, and lets us focus on what we do best: solving hard engineering challenges and delivering the future of VR."
This acquisition is expected to finish in the second quarter of the year. But unfortunately there is no launch window yet for the Oculus Rift.