Facebook Acquires Virtual Reality Company For USD2 Billion. What Does Zuck Want With It?

Facebook is purchasing Oculus VR, a virtual reality headset company best known for its Oculus Rift gaming device, in an unexpected $2 billion dollar deal.

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This Is The Oculus Rift, A Virtual Reality Headset

The Oculus Rift headset

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On 25 March 2014, Facebook Bought Oculus VR, The Maker Of The Virtual Reality Headset For USD2 Billion

Facebook announced Tuesday that it has agreed to buy the virtual reality technology company Oculus VR, which makes the Oculus Rift headset, for about $2 billion in cash and stock.

Facebook announced Tuesday that it acquired Oculus VR, the company behind the Oculus Rift gaming headset in a cash and stock deal valued at $2 billion.

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The deal includes $400 million in cash and $1.6 billion in Facebook stock, as well as an additional $300 million if Oculus meets certain performance targets.

Oculus will continue to operate independently at its headquarters in Irvine, Calif. The deal is expected to close in the second quarter of 2014.

Although Rift Has Been Pitched As A Video Gaming Device, Facebook Plans To Use Its Technology For Communications, Media And Other Forms Of Entertainment

In a conference call with analysts, Zuckerberg said virtual reality has the potential to be the next great computing evolution, following the transition from desktop computers to mobile devices.

Facebook CEO Mark

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“Oculus has the potential to be the most social platform ever, ”he said. ‘“Imagine sharing not just moments with your friends online, but entire experiences and adventures.”

In A Post On Facebook, Zuckerberg Talks At Length About How Facebook Plans To Make Oculus VR A Platform For "Completely New Kinds Of Experiences"

According to Facebook CEO Mark Zuckerberg, the company's reasons for purchasing the company go beyond its obvious uses in gaming.

Facebook isn’t just buying into mobile messaging — it’s also going for gaming.

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In a Facebook post, he writes: But this is just the start. After games, we're going to make Oculus a platform for many other experiences. Imagine enjoying a court side 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.

This is really a new communication platform. By feeling truly present, you can share unbounded spaces and experiences with the people in your life. Imagine sharing not just moments with your friends online, but entire experiences and adventures.

The Oculus Rift Project Gained Prominence On Kickstarter, Raising Over USD2 Million In The Summer Of 2012

Oculus VR was founded by Palmer Luckey. The firm got its initial funding via a Kickstarter campaign. The company raised close to $2.4 million being from 9,522 backers on Kickstarter website, much more than the original target of $250,000.

Palmer, Brendan, John and the Oculus team

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The company then raised $75 million in December in a round of funding led by Andreessen Horowitz. Oculus currently has over 100 employees and has distributed some 75,000 software development kits for Oculus Rift to game developers and others.

The Oculus Rift Kickstarter campaign.

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The Oculus Team Wrote In Its Own Blog Post Announcing The Deal, "Facebook Understands The Potential For VR"

"Mark and his team share our vision for virtual reality’s potential to transform the way we learn, share, play, and communicate. Facebook is a company that believes that anything is possible with the right group of people, and we couldn’t agree more."

ALSO READ: How An Art Experiment Gave Participants The Chance To Swap Bodies With Their Partners Using Oculus Rift