Social networking giant Facebook has announced that it is buying the company Oculus VR, the makers of the virtual reality goggles Oculus Rift. The said deal will comprise of $400 million in cash and 23.1 million shares of Facebook. Based on the social network giant’s current share valuation, the deal will cost about $2 billion. The deal also indicates an additional $300 million in cash and stock for achieving certain milestones.
The company Oculus VR is an 18-month old company based in Irvine, California. It was founded by 21-year old Palmer Luckey. It started obtaining funds by starting a Kickstarter campaign that accumulated more than $2.9 million for the development and production of the Oculus Rift. Its virtual reality headset is receiving healthy interest among developers, having already about 75,000 orders for its development kits. Just recently, the company has announced that it has come up with the final development kit for its virtual reality headset ahead of its official release.
Facebook will plan to extend the applications of the technology beyond gaming and will include new verticals such as in communications, education, media and entertainment among many other areas. Mark Zuckerberg, Facebook founder and CEO said, “Mobile is the platform of today, and now we’re also 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.”
The said acquisition deal is expected to close in the second quarter of this year.