Facebook has acquired Oculus VR, the virtual reality headset developer, for $2 billion. The deal will be split, $400 million in cash and 231 million Facebook shares, valued at $1.6 billion. Facebook has added additional $300 million incentives to the deal, based on performance.
The deal is still in process, but we doubt it will be hit by much regulation, considering the scope of the virtual reality market. Facebook’s CEO Mark Zuckerberg has said Oculus VR is the future of gaming and Facebook wants to offer social integration into the market, making it the best consumer device for interacting with friends and fellow gamers.
Palmer Luckey, founder of Oculus VR, has also pitched in that the virtual reality headset will continue on its mission to provide the best VR experience. When asked about Facebook integration, Luckey said there will be no “sign into Facebook” integration on Oculus VR.
The Internet has reacted about as well as expected to the news, claiming that the Oculus VR is dead and Facebook will kill the virtual reality headset with social gaming and advertisements. Facebook has been a rather hands off owner in the past, if we look at Instagram, there has not been a lot of change to the photo application since the acquisition.
This is Facebook second billion dollar acquisition of 2014, the first being WhatsApp for $19 billion. This was another deal where people claimed the app was dead now Facebook owns it, but we have yet to see any real data to show the death of WhatsApp or the app slowing down when it comes to new users.
Oculus VR is looking to make their first consumer product available sometime in 2014, possibly in the second half. We will be watching to see if any Facebook integration or social marketing is added onto the virtual reality headset.