Facebook goes all in on the Oculus Rift, buys Oculus VR for $2 billion

The Oculus Rift is an amazing piece of technology and the company behind it all, Oculus VR, has become a leader in the immersive virtual reality space with a ton of attention being sent their way and it’s about to increase Oculus has now announced an agreement to be acquired by Facebook.

The partnership between the two organizations sees Facebook paying out $400 million, and 23.1 million Facebook shares with an additional $300 million earn-out in cash and stock based on the achievement of certain milestones with the grand total reaching $2 billion.

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

“We are excited to work with Mark and the Facebook team to deliver the very best virtual reality platform in the world,” said Brendan Iribe, co-founder and CEO of Oculus VR. “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.”

The move for Facebook is certainly an interesting one and one that seemingly came out of nowhere, though it has been suggested others were also courting the company. As expected when Facebook acquires any company, there are already some concerns with the acquisition.

Most notably, the creator behind Minecraft, Markus Persson otherwise known as Notch has already cancelled a deal to bring Minecraft to Oculus stating "Facebook creeps me out" but expanding upon it on his blog.

Via: Oculus, FaceBook, Mark Zuckerberg

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Chris Parsons

Editor-at-Large at Mobile Nations, gadget junkie, energy drinker, ranter.

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Reader comments

Facebook goes all in on the Oculus Rift, buys Oculus VR for $2 billion


Seems like fb is just buying as many companies as possible that have a future because maybe they know Facebook is just becoming so meh for many people and the future for Facebook as just as social network is bleak so they are buying companies that will keep Facebook as a name going on rather than Facebook as a social network.

Posted via the Android iMore App!

I really feel for the backers on Kickstarter.
They were all committed to the development and dream and they get a big crap sandwich.

Backers on kickstarter got exactly what they paid for. No different than playing the stock market

Sent from the iMore App

This is exactly the type of company apple should be buying, the implementation for games, TV, meetings, wearables etc could of been amazing. Why arnt they???

Maybe because there's no viable wearables market just yet and therefore it's too premature to enter it. Making wearables for the sake of making them or because other companies are making them isn't the right way to go about it. A company must be able to answer what problem that specific product will, or will be able to solve, before building it. Do wearables solve anything meaningful, yet?

The only practical reason I've seen mentioned is health / fitness monitoring.

the business case for wearables has already been made:

http://www.cultofmac.com/page/7/ (see this page for the link below)
http://www.cultofandroid.com/55386/android-wear-will-rule-smartwatch/ (I'm staggered imore didn't cover this)

and I'm not making the business case for apple to enter the market because I'm not employed by them lol, but isn't that what apple used to do, make us aware of problems we didn't knew we had, to quote somebody very famous "are you getting it yet?"

mmm, its one hell of a phone though, too big for my liking. but as i understand it, you can refocus a picture on another object in a picture after you've taken it, clever

I agree. Facebook is known for throwing stupid amounts of money at stuff that may or may not have a future. Now before anyone goes crazy, Im not saying the genre doesn't have a future, I'm saying this particular product may not for a number of reasons from financial support to inability to come through on the manufacturing process. Apple doesn't throw stupid money like that and right now this doesn't fit the path they are on.

Absolutely and completely disagree with if it was bought by apple it's not the path apple are on. but I completly agree with you that, 2 billion (according to the bbc today) is silly money, even if the market for wearables has already been proven. And I agree since Facebook have acquired it, F**k knows what will happen to it and they will just screw it up or it'll just get forgotten about, I hope not, massive shame!!!

and if there wasn't any viable wearables market i don't think google would be bothering to do this by this summer:

and trust me google (as with any other big company out there) don't spend money on all those business analysts to identify gaps in the market that don't exist!!!

oh and have you noticed that little tab next to wpcentral in the black toolbar at the top of this page; even the imore/mobile nations crew is trying to get in on the smart watch action, i wonder why?!?!?!?!

When people have to explain (defend) why they still have facebook installed, then there's problems. It's AOL all over. I use it to share baby pics still but it's a ghost town compared to a few years ago. The younger ones in family have definitely stopped using it.

Also, any commenting system or service that uses facebook is dead to me.

I can see why they sold out to Facebook with the increased development budget and so on. From their perspective I can imagine it is a shrewd move.

Plus, money talks...

Personally, as someone with a long-standing dislike of Facebook, I have cancelled my Oculus Rift pre-order until the details on the acquisition and their decisions on how to move forwards are made public. If I ever see something that would require me to be signed into Facebook to use an Oculus Rift then that will be the point when I decide that this is not for me and I shall explore alternatives.

I feel that Facebook is becoming slightly too insidious in that I have found websites that will only allow you to join if you create an account using your Facebook credentials. As I don't have a Facebook account, I don't really want to create one merely to use another seemingly unaffiliated website. I think Facebook has started to get their hands on too many things and are in danger of becoming 'the' internet even more than they already are. Many times I have heard stories from people I know and trust personally to do with how Facebook has changed their policies by the backdoor without letting anyone know, all merely to drive advertising down people's throats. It used to be that you could set your account so only people on your friends list could message you, now anyone and everyone can. It used to be that you could stop seeing game, app and advertising activity from your friends, and only see their likes, photos and/or wall posts, now it's either nothing or everything.