MENLO PARK, USA: Facebook from its barrio has reached a definitive agreement to procure 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 stakes 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 cut). The agreement from its part also provides for an additional $300 million earn-out in cash and stock based on the achievement of certain milestones.
Oculus is the spearhead in immersive virtual reality technology and has from its quarter already built strong interest among developers, having received more than 75,000 orders for development kits on behalf of the company’s virtual reality headset, the Oculus Rift.
Even though the applications for virtual reality technology beyond gaming are in their nascent stages, several industries from their end are already experimenting with the technology, and Facebook plans to extend Oculus’ existing advantage in gaming to new-fangled verticals, plus communications, media and entertainment, education and for that matter other areas as well. Given these broad potential applications, virtual reality technology is but a resilient candidate to surface as the next social and communications platform.
“Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow,” alleged Facebook founder and CEO, Mark Zuckerberg. Supplementing that – “Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate.”
“We are excited to work with Mark and the Facebook team to deliver the very best virtual reality platform in the world,” held Brendan Iribe, co-founder and CEO of Oculus VR. Rhetoricising that – “We believe virtual reality will be heavily defined by social experiences that connect people in magical, new ways. It is a transformative and disruptive technology, that enables the world to experience the impossible, and it’s only just the beginning.”
Oculus will keep up with its headquarters as situated in Irvine, CA, and will endure development of the Oculus Rift, its flagship and cutting-edge virtual reality platform.
The transaction however is anticipated to close in the second quarter of fiscal 2014.