Facebook Buys Oculus VR: Oculus Rift Maker Sold For $2 Billion, Will Virtual Reality Merge with Social Media?
Facebook is taking virtual reality by storm in its latest venture to buy startup gaming company Oculus VR for $2 billion. According to Forbes, the $2 billion investment is split up as "... $400 million in cash and 23.1 million shares of Facebook stock, and an additional $300 million potential earn-out in cash and stock based on the achievement of certain milestones."
So what is Oculus VR? Well, according to the Oculus website it is a "Technology company revolutionizing the way people experience video games."
Oculus VR is the creator of the Oculus Rift, which is a large headset that features a 5-inch OLED display set in front of the consumer's eyes. It connects to a computer through the use of a cable that allows the user to see everything in 3D. The man behind the creation is Palmer Luckey, who first introduced the Oculus Rift device in September of 2012 through humble beginnings with a Kickstarter Campaign.
Facebook mogul, Mark Zuckerberg, opted to buy the company after his personal VR experience at Stanford University with the groundbreaking Oculus Rift device a few weeks ago. In a recent Facebook post, Zuckerberg revealed his future plans for the Oculus Empire.
"After games, we're going to make Oculus a platform for many other experiences. Imagine enjoying a courtside 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. Imagine sharing not just moments with your friends online, but entire experiences and adventures."
Although Zuckerberg's plans seem innovative, Kickstarter backers aren't buying it. The overall consensus of Kickstarter backers is that Luckey is a sell-out who's opted for money instead of expanding on Oculus Rift's true potential.
Here's a look at what one back had to say about the recent $2 Billion Deal:
"A sell out is a sell out, and it means the end of VR Gaming. Welcome your Social VR overloads."
Despite the not-so-loving remarks from former supporters, Luckey stands firm in his decision to move on with Facebook. What will be the overall outcome of this pricey merger? Well, we'll just have to wait and see.