Facebook could be in equal standings with Google in the next few years, if they continue on the same path they are right now. The company recently made another billion-dollar acquisition, in-addition to Instagram and WhatsApp, the company now owns Oculus VR. The announcement was made on Tuesday afternoon that both company has reached a deal for Facebook to acquire the Virtual Reality platform.
Oculus VR Inc. makes the Oculus Rift, a virtual reality headset that’s received a lot of attention from video game developers, though it has yet to be released for consumers. The headset covers the users eye and creates an immersive world that reacts to turning one’s head or moving back and forth.
Zuckerburg seriously believes that virtual reality could be the future of gaming and could even be used to enjoy a courtside seat at a basketball game, study in a classroom, consult with a doctor face-to-face or shop in a virtual store. He explained saying: “Imagine sharing not just moments with friends online but entire experiences and adventures.”
Facebook revealed Tuesday that the deal includes $400 million in cash and 23.1 million shares worth about $1.6 billion. Oculus employees are also eligible for an additional $300 million if the company achieves certain targets. With all these recent acquisitions, it leaves us to wonder how much money does Facebook actually has?
We started Oculus with a vision of delivering incredible, affordable, and ubiquitous consumer virtual reality to the world. We’ve come a long way in the last 18 months: from foam core prototypes built in a garage to an incredible community of active and talented developers with more than 75,000 development kits ordered. In the process, we’ve defined what consumer virtual reality needs to be and what it’s going to require to deliver it.
A few months ago, Mark, Chris, and Cory from the Facebook team came down to visit our office, see the latest demos, and discuss how we could work together to bring our vision to millions of people. As we talked more, we discovered the two teams shared an even deeper vision of creating a new platform for interaction that allows billions of people to connect in a way never before possible.
Today, we’re pleased to announce that we’ve joined forces with Facebook to create the best virtual reality platform in the world.
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.
Most important, Facebook understands the potential for VR. Mark and his team share our vision for virtual reality’s potential to transform the way we learn, share, play, and communicate. Facebook is a company that believes that anything is possible with the right group of people, and we couldn’t agree more.
This partnership is one of the most important moments for virtual reality: it gives us the best shot at truly changing the world. 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.
Over the next 10 years, virtual reality will become ubiquitous, affordable, and transformative, and it begins with a truly next-generation gaming experience. This partnership ensures that the Oculus platform is coming, and that it’s going to change gaming forever.