Facebook announces $2 billion acquisition of virtual reality headset maker Oculus VR

By Shawn Knight · 36 replies
Mar 25, 2014
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  1. facebook oculus

    Facebook has reached an agreement to acquire Oculus VR, makers of the pioneering Oculus Rift virtual reality headset, as part of a deal valued at $2 billion. The deal includes $400 million in cash and 23.1 million shares of Facebook common stock on top of a $300 million earn-out in cash and stock based on certain milestones according to a press release on the matter.

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

    Most have associated the headset with gaming up to this point but with Facebook on board, the possibilities are suddenly wide open.

    Brendan Iribe, co-founder and CEO of Oculus VR, said they are excited to work with Facebook to deliver the very best virtual reality platform in the world. As Iribe notes, it is a transformative and disruptive technology that enables people to experience the impossible and it’s only just the beginning.

    The deal likely makes Oculus VR the most successful Kickstarter story to date which is impressive considering they haven’t even released a consumer product yet. A prototype started making noise in early 2012 and eventually hit the crowdfunding site during the summer of 2012, raising nearly $2.5 million from the campaign.

    During this time, the Rift caught the eye of legendary game developer John Carmack who ultimately resigned from id Software to work on the project full time. The company is now taking pre-orders for the final dev kit before the commercial release which still doesn’t have a date associated with it.

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    Last edited by a moderator: Jan 16, 2017
  2. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    Sorry but is this seriously april 1st? As it HAS to be I mean come on facebook is buying useless companies which will do NOTHING for them I am just totally lost on this one why in the hell would a social network buy a VR headset company it just doesn't make sense not even in the tiny tiny 0.000000001%!!!!

    Its clear now that Mark Zuckerberg is trying to destroy facebook I mean does he want his company to have zero stock or does he want to destroy Oculus?

    I can not see how this purchase is in anyway beneficial to facebook which lets remember is meant to be tiny so it can be ran on phones etc. or does Mark just invision us using oculus to read about what my mother ate for dinner this morning....
  3. Damn.
  4. Will86c

    Will86c TS Rookie

    Please let this be an April Fools Day joke.
    Wendig0, Jad Chaar and wastedkill like this.
  5. Don't worry guys, this is a cover up for Whatsapp ;)
  6. hahahanoobs

    hahahanoobs TS Evangelist Posts: 2,043   +679

    I seriously did not see this coming. Do we say RIP to the Rift now?
  7. FB can't handle the red pill so they bought the blue pill. Don't worry Zuck FB is really worth 165 billion lol.
  8. j05hh

    j05hh TS Booster Posts: 156   +34

    Really? this is sad news. rip
  9. Tekkaraiden

    Tekkaraiden TS Evangelist Posts: 997   +93

    Well one of his better investments, I just hope he has the intelligence to leave them be and let them develop the product.
    Last edited: Mar 25, 2014
  10. This REALLY sucks. Zuckerfool will use it to slap virtual ads to your face.
  11. drjekel_mrhyde

    drjekel_mrhyde TS Rookie Posts: 101   +7

    Who says Facebook would even tamper with the day to day of Occulus. This to me is just a move to put more money in their pocket just in case the next new popular social network springs up.
  12. coppersloane

    coppersloane TS Enthusiast Posts: 108   +33

    Horrible. Oculus is done. It's over. Moving on to Sony's Morpheus for my VR hopes.
  13. m3tavision

    m3tavision TS Rookie

    I basically have lost all interest in Oculus.
  14. m3tavision

    m3tavision TS Rookie

    I think you are missing the bigger connection.. to have Oculus, you will now have to have a FB account (or whatever), & Mark likes to sell your info. He is far too greedy to let this develop on its own, without tying it into his revenue stream.
  15. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    He will sell you oculus rift as a way to view facebook and interact with it in a new 3D way.... lol
  16. andyo

    andyo TS Member

    The oculus is now ruined for me.
  17. Burty117

    Burty117 TechSpot Chancellor Posts: 3,147   +915

    Minecraft creator was going to make a port of his game for Rift, he has now changed his mind and canceled the project after hearing this.

    I've got feeling he's not the only developer who will do this...
    trgz likes this.
  18. trgz

    trgz TS Addict Posts: 222   +50

    I reckon Gabe's response is going to be interesting...
  19. TS-56336

    TS-56336 TS Addict Posts: 609   +109

    That was the sound of millions of dreams dying. Also, the sound of a humbled "master race." lol
  20. kuroiei

    kuroiei TS Enthusiast Posts: 93   +31

    Well, it's over. No, really, if either Microsoft, Facebook or Google acquires something dear to me, I have this horrid sensation of disgust. I think that it's because now I know that it's no longer Oculus that developes it, a fresh company that NEEDED and WANTED Oculus Rift to succeed in order to survive but rather a big, fat corporate company that only does it for more side-profit. It can fail now with no responsibility whatsoever, could be used as a toy or rather a virtual reality add force-feeder. God damn. God damn.
  21. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 8,647   +3,274

    Don't be so sour folks, soon we'll be able interact with and watch useless ad's in rich 3D, a FB dream come true, what could be better than that?
    Imagine walking down the street socializing on FB with these things clinging to your mug... suddenly Google Glasses are starting to look very appealing.
  22. Puiu

    Puiu TS Evangelist Posts: 2,667   +1,100

    Why are people freaking out? John Carmack is still working on the VR headset and I'm sure that facebook has been negotiating with the for months if not a whole year. Nothing will change.
    With the extra cash they are getting a late 2014 release date is no longer a dream.
  23. Puiu

    Puiu TS Evangelist Posts: 2,667   +1,100

    he is the only one. he doesn't like working with facebook? then what about working with microsoft? I find that very contradicting.
    he just cancelled the title because the market is not big enough to warrant the development cost yet. I'm sure he will reconsider his decision a year after the oculus is released, if it's successful.
  24. Burty117

    Burty117 TechSpot Chancellor Posts: 3,147   +915

    Yet he put $10,000 into the kick starter...

    He is the only one to come out and say it, I would place a decent amount of money on others following, Big companies like Google, Microsoft and Facebook have a way of buying decent companies and ruining them, not all the time, sometimes they thrive, but that's more the exception than the rule.
  25. Rasta211

    Rasta211 TS Booster Posts: 215   +32

    My first gut reaction to this news is that now people who get this product will have to watch ads and connect to facebook to use it.

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