Facebook has announced that an agreement has been reached with Oculus VR, Inc to purchase the virtual reality developer for $2 billion. Of the $2 billion being paid, $400 million of it will be in cash and the remainder will amount to 23.1 million shares of Facebook common stock valued at $69.35 per share.
“Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow,” Facebook founder Mark Zuckerberg says. “Oculus has the chance to create the most social platform ever, and change the way we work, play, and communicate.”
The upcoming acquisition comes shortly after the Oculus team unveiled its new development kit 2, on pre-order for $350, at the Game Developers Conference. While Oculus VR will now be owned by Facebook, it will maintain its headquarters in Irvine, CA and continue its work on the Oculus Rift.
Oculus VR CEO Brendan Iribe also spoke about their acquisition by Facebook saying, “We are excited to work with Mark and the Facebook team to deliver the very best virtual reality platform in the world. 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 transaction is expected to take place sometime in the second quarter of 2014.
Is this a smart business move on Facebook’s part and is this a good thing for the Oculus team? Sound off in the comments below!