Facebook acquires Kickstarter backed virtual reality technology startup Oculus for $2 billion
It’s yet another shocker from Mark Zuckerburg.
Facebook today announced the acquisition of Oculus, leading virtual reality company for approximately $2 billion. This deal includes $400 million in cash and 23.1 million shares of Facebook common stock. The deal is ‘approximate’ as it includes additional $300 million earn-out in cash and stock based on the achievement of certain milestones.
From a $250K Kickstarter project to $2B exit in less than two years, Oculus has received over 75000 orders for development kits for its virtual reality headset – Oculus Rift. Facebook shall expand Oculus’ existing presence in gaming to communications, media and entertainment, education and other areas.
Post Facebook’s acquisition, virtual reality technology is going to the next bet as ‘the emerging social and communications platform’.
After acquiring WhatsApp and its over 450 million mobile users, Mark Zuckerburg is now concentrating his efforts on the future of technology. He said,
"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."
Brendan Iribe, co-founder and CEO of Oculus VR echoing the same excitement mentioned,
"We are excited to work with Mark and the Facebook team to deliver the very best virtual reality platform in the world. 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 maintain its headquarters in Irvine, CA, and will continue development of its groundbreaking virtual reality platform, Oculus Rift.
Is Face first going to be the new mobile first?
Watch out this space for further updates.