Facebook bought virtual reality gaming firm Oculus for $2 bn

World most promising social networking site Facebook on 25th March has bought virtual reality gaming company Oculus for $2 b.

This deal is Facebook first hardware deal since its inception in 2004. Facebook had recently bought the messaging service WhatsApp for  $19 billion.

Facebook will pay $400 million in cash, with 23.1 million shares of Facebook common stock valued at $1.6 billion. In addition, the deal includes a $300 million earn-out in cash and stock. 

A two-year-old firm, Oculus VR Inc is a maker of virtual-reality glasses for gaming and the deal marks Facebook’s foray into the fast-growing wearable devices arena. Reports suggest that the move comes as a shift in an evolving technology industry, at a time when consumers are increasingly abandoning their PCs for smartphones. 

Oculus now has over 100 employees and has distributed around 75,000 software development kits for Oculus Rift to game developers and others. 

The company and its employees will operate independently from Facebook and continue its path of developing a platform for virtual reality games. However, Facebook’s vision for Oculus is much bigger than games. 

In a Facebook post, CEO Mark 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.” 

Facebook’s deal is expected to close in the second quarter, and marks the company’s second multi-billion dollar acquisition since mid-February.

Source: http://cablequest.org/news/new-media/item/4483-facebook-bought-virtual-reality-gaming-firm-oculus-for-$2-bn.html
Source: http://cablequest.org/news/new-media/item/4483-facebook-bought-virtual-reality-gaming-firm-oculus-for-$2-bn.html