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Facebook to acquire virtual reality firm Oculus VR for $2B in cash and stock

post #1 of 59
Thread Starter 
Social media monolith Facebook is said to prepping another huge acquisition, this time setting its sights on Oculus VR, the virtual reality hardware and software firm responsible for the Oculus Rift.

Oculus


Less than one week after announcing a second-generation Oculus Rift development kit, the virtual reality company has revealed it will be purchased by Facebook for some $2 billion in cash and stock. The news was first tweeted by Bloomberg.

"Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow," said Facebook CEO Mark Zuckerberg. "Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."

According to a press release issued by Facebook, the company is paying for Oculus with $400 million in cash and 23.1 million shares of Facebook common stock. The deal is expected to be finalized by the second quarter of 2014.

Under the terms of the agreement, Oculus will continue operations from its headquarters in Irvine, Calif., including work on the latest iteration of its Oculus Rift platform.

The sale comes as a surprise to many, especially given the buzz around Oculus' hardware offerings. The Oculus Rift created a stir in the gaming industry when it was introduced on Kickstarter in 2012. After a hugely successful funding round, the startup went on to raise nearly $100 million in venture capital financing.

With Facebook's infusion of cash and resources, Oculus may be in a better position to accelerate a market date for the Rift, which is still in beta testing.

The Oculus acquisition could mark the start of a Facebook buying spree, as the company just last month purchased popular messaging app WhatsApp for $16 billion plus $3 billion in restricted stock units.

"This partnership is one of the most important moments for virtual reality: it gives us the best shot at truly changing the world," said Oculus founder Palmer Luckey in a prepared statement. "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."
post #2 of 59
This makes more sense to me than snap chat.
post #3 of 59
There really isn't any good news anymore, is there?
post #4 of 59
Just what we needed -- Facebook VR with the platinum pro news feed.
post #5 of 59

Oh good God. Go away Facebook. Systematically ruing the world they are.

Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #6 of 59

What the...???  What a bizarre acquisition.  It's amazing how many billions these companies can throw around.

 

I'm sure Facebook and Google dream of a world where we walk around wearing their goggles/glasses that bombard us with "personalized" advertising everywhere we go.  It's like a dreary sci-fi movie come true.

 

I'm not taking part in that world.

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post #7 of 59
Quote:
Originally Posted by scalpernt View Post

This makes more sense to me than snap chat.

I'm not seeing how virtual reality fits into social connection.

"Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."

When someone wears the goggles, they can't even broadcast their face to the other person. You can't type either because you can't see the keys. Maybe the following video shows what they'll get to eventually (nsfw) but it's a while away:

http://www.youtube.com/watch?v=ZFrkcCufwK4#t=105

These purchases seem to be more and more the result you get from a 29 year old having tens of billions of dollars to blow on whatever he feels like. Here's the justification:

http://www.businessinsider.com.au/zuckerberg-why-facebook-bought-oculus-2014-3

"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.

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."

Imagine the possibilities.

Patient on VR: doc, I have this weird growth can you take a look at it
Doc: ok just remove your underwear and point the camera down
Patient: did I just hear a crowd groaning?
Doc: yeah, I have all my Facebook followers watching
post #8 of 59
This is wonderful news. Viable VR couldn't be in better hands! The advertisements will be so REAL now!
post #9 of 59

I literally shouted "no!" out loud when I read this.

 

Faceboom is turning into Google...

post #10 of 59
This makes no sense to me--but as long as Oculus stays separate from any Facebook account/login nonsense, I'm happy to see an awesome tech get more funding! I'm cautiously optimistic. The best thing: this is one MORE reason (after Carmack and Sony) for the public to realize that VR tech is "for real" this time. Simon Says!

I don't see how a Facebook account could be involved/required anyway, so I'm not too worried. The Rift is hardware, with support from gaming middleware (Unity, Unreal, etc.). I don't see how that basic situation could change much. Are they going to make Portal 2 require a Facebook login to play in VR? Of course not.

If Facebook wants to make some VR social platform (next-gen Second Life?) well... go nuts. That's NOT what I want to do with VR myself, but no harm in trying. Games and education will engage more people I'm sure. (Or maybe a VR social gaming hub, where you're in an avatar-based lobby BEFORE you play games? Ugh--just give me a menu. Still not interested.)

Eventually I see the Rift being completely standalone: a console IN a headset, that runs its own titles (since titles must be prepped for Rift anyway). Base it on some custom Android fork or whatever... I don't care... just as long as cuts the tether and supports the major game engines.

(Connecting it to a phone makes less sense: you still have a cord then, and this kind of 3D would burn battery life like mad. Wireless video? Lag is a killer for VR. Better to put the processor ON the goggles... eventually.)

In the meantime, it's a terrific PC/Mac peripheral. The dev kit is amazing, and I can't wait for the 1080p consumer edition.
post #11 of 59

Evidently Facebook sees more of a future in gaming than in posting idiotic pictures?

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Proud AAPL stock owner.

 

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post #12 of 59
Quote:
Originally Posted by RedHotFuzz View Post
 

It's amazing how many billions these companies can throw around.

I know. I was just reading the other thread to learn that Luxottica bought Oakley. I said wow, I did not know that, so I looked it up and it happened back in 2007 for guess how much? $2 billion. I know that was a while ago, but there hasn't been so much inflation that would make Occulus worth that much. At least Oakley makes stuff that everyone wants.

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Life is too short to drink bad coffee.

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post #13 of 59
Quote:
Originally Posted by scalpernt View Post

This makes more sense to me than snap chat.

I'd like an explanation. SnapChat, even though something I'd think FB could do in their sleep, is at least in the same wheelhouse. I don't see how FB pages and VR fit together.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #14 of 59
Sooo...is this Apple related? Cuz I'm really curious if Oculus was ever supposed to be Mac friendly or just another PC tech. Or maybe Facebook will bring it to the Mac?

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

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post #15 of 59
Google VR coming in 3,2,1...

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"Apple should pull the plug on the iPhone."

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post #16 of 59
Quote:
Originally Posted by Suddenly Newton View Post

Google VR coming in 3,2,1...

Careful what you wish for. 1biggrin.gif


"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #17 of 59
Will not buy it now. Screw FB!
post #18 of 59
Um...is Zuck having a one-third-life crisis?
post #19 of 59
Dear world,

I am sorry for your loss.

Sincerely,

Me
post #20 of 59
It is clear that FB is running out of ideas and has to acquire anything that has a remote future/upside. I cursed FB and I am going to dump all my FB shares.
post #21 of 59
My only concern is if Zuck get's bored with it and let's it die on the vine.
post #22 of 59
https://twitter.com/notch/statuses/448586381565390848

"We were in talks about maybe bringing a version of Minecraft to Oculus. I just cancelled that deal. Facebook creeps me out."
melior diabolus quem scies
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melior diabolus quem scies
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post #23 of 59

Wut?

I guess Facebook is moving away from social media and trying to bulk up as a conglomerate of multiple business like Google?

post #24 of 59
Valve has to step up now and save the dream. Seriously one of the most depressing acquisitions in the history of technology.
post #25 of 59

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #26 of 59
That's certainly unexpected.
post #27 of 59
Quote:
Originally Posted by SolipsismX View Post


I used to love those.
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #28 of 59
Quote:
Originally Posted by dasanman69 View Post

I used to love those.

Yeah, we had a bunch of those when we were kids. At the time we thought those were pretty cool. At the time

Edit: You reminded me I have a couple of old stereopticons and a few hundred cards I hadn't looked at in a few years now. I might spend some time with those later. I don't ever recall my son seeing them before and he might think they're kind of neat for a few minutes.
Edited by Gatorguy - 3/25/14 at 5:09pm
melior diabolus quem scies
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melior diabolus quem scies
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post #29 of 59

Honestly... I listened to the conference call and announcement of the Oculus VR acquisition and Zuckerberg must be high to think this is a smart move on their part. He's delusional. If he had purchased dozens or hundreds of small game developers instead, they would've spent their money much more wisely.

 

http://www.shareholder.com/visitors/event/build3/stage/stage.cfm?mediaid=63723&mediauserid=0&playerselect=win

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Proud AAPL stock owner.

 

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post #30 of 59

Whatever, those are still cool.  What's so uncool about stereoscopic imagery?  We have two eyes.

post #31 of 59
Let's face it. Second life 720degrees 3D has a future. And with maturing holographic recording technology combined with state of the art animation, new frontiers are to be discovered.

Certainly the adoption will start with porn and games but will be followed soon by blockbuster movies (imagine yourself in LotR on a mountain side, be on BBC Planet Earth), television (RT reports from disaster locations, watching football ON the field!, peak inside the ISS, be in the crowd at live performances), science/education (float within molecular structures, walk through axons and cell membranes, travel the milky way at warpspeed, services will transform (webshopping will be completely new, visualization of construction works/architecture/interior design, take a look at new car models, go sightseeing, fit an endless choice of fashion products, be performers in dating stories). Industry will certainly follow people who can buy the expensive goggles and content.

Immersive experiences. Nobody asked for it, but it will come very soon I think.

You might hope the world will just stop with this insanity and move on to genuine contact. Nah...
I stopped watching television some years ago though.
Edited by cykz - 3/25/14 at 6:28pm
post #32 of 59

Candy Crush Saga in virtual 3D!!!!!...................................Seriously, I want to shoot myself. This has to be the most depressing news of the year.

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post #33 of 59
Quote:
Originally Posted by bobborries View Post

My only concern is if Zuck get's bored with it and let's it die on the vine.

Isn't Vine owned by twitter? 1smile.gif
post #34 of 59

Facebook really isn't in competition with Apple.  I think it is OK that they bought Oculus. I'm glad it wasn't Google or Microsoft or Amazon.  That would have been bad for Apple.

post #35 of 59
Quote:
Originally Posted by rf9 View Post
 

Wut?

I guess Facebook is moving away from social media and trying to bulk up as a conglomerate of multiple business like Google?


Google is a one-trick pony.  They just throw stuff at the wall to see what sticks.  Everything they do is just a beta.

post #36 of 59
We'll Google buys up lots of companies seemingly random. It seems like Facebook is going for the shotgun approach here too. Hedge bets and get I to everything so if social media dries up they're in other businesses.
post #37 of 59

Damn.. who is not for sale? Seems no one wants to grow a business anymore.

post #38 of 59
Quote:
Originally Posted by Gatorguy View Post

https://twitter.com/notch/statuses/448586381565390848

"We were in talks about maybe bringing a version of Minecraft to Oculus. I just cancelled that deal. Facebook creeps me out."

 

That was my first reaction in reading the headline, I was looking forward to picking one up (although Sony's recently introduced offering looks promising).  Facebook acquiring them just shifted it to a slim to none chance I'll buy one.

post #39 of 59
Quote:
Originally Posted by NasserAE View Post

Damn.. who is not for sale?

I'm not for sale… if you pay me enough not to be bought.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #40 of 59

Welcome to Oculus VR.
Please read the health and safety warnings before continuing.

Please log in with your Facebook account, or Sign up for free!

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

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