August 23, 2014

Facebook buying Oculus Virtual Reality for $2 Billion

Facebook buying oculus

Facebook has been known for buying out products and companies have been successful were on the verge of success. Usually Facebook would acquire a new social network, an app or some online services, but now Facebook is buying the outcome of a Kickstarter project known as Oculus Virtual Reality. Oculus Virtual Reality was sold for $2 Billion ($400 million cash, $1.6 billion stock).

According to Zuckerberg, mostly nothing will change for Facebook and nothing will change for Ocululus, for now. Oculus is expected to stay at its headquarters, employees will keep their jobs, also Android support for Oculus is still in development. According to Zuckerberg the only thing that has changed is the ownership.

Facebook buying Oculus could be Facebook’s attempt to enter the gaming and home entertainment market. Facebook sees Oculus as the next step in home entertainment, and thus could be Facebook’s first step toward home entertainment.

The deal could also be an example of history repeating itself. Back in 2005, Google bought out Android, and by making it open-source it went onto dominating the market. Facebook could be doing something similar with the Virtual Reality technology by not only being some of the leaders in their field, but they could add incentive for other companies to make drastic strides in their technology, much like we see in the competition between Apple, Samsung, and HTC.

Even though the deal just went though, what do you think about this? Let us know in the comments!

Source: Facebook