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Oculus Rift Officially Owned by Facebook, $2 Billion Deal Closes

by onJuly 24, 2014
 

The social media giant Facebook has officially closed the deal of $2 billion acquisition of virtual reality headset, Oculus Rift.

The deal in discussion which was confirmed back in March 2014 has now been approved by the California Department of Corporations fairness hearing and will proceed for further actions. Following the approval, the total price of the deal has turned out be a massive $2,001,985,000.

Oculus Rift Officially Owned by Facebook, $2 Billion Deal Closes

Out of these $2 billion, $400 million were paid in cash, while the remaining $1.6 billion in stock. Furthermore, Facebook has also announced an incentive of $300 million, provided that Oculus Rift manages to attain certain milestones. As for the in stock $1.6 billion, it has been reported that it was based on a $69.35 share price average from the 20 trading days preceding Mar. 21, 2014.

Not merging with Facebook’s main offices, Oculus Rift will continue to operate individually in Irvine and Los Angeles offices. Speaking of the partnership, both companies are looking forward to build up a re-imagined future where people will interact in an entirely different manner:

“We’re looking forward to an exciting future together; building the next computing platform and re imagining the way people communicate.”

Soon after its acquisition, Oculus Rift was picked apart from its backers on the project’s Kick-starter page with people considering it unfair to sell a project funded by backers’ money. However, it kind of settled down when 21-year-old creator of Oculus Rift Palmer Luckey issued out a statement saying that everything was for greater good and no drastic changes will occur.

In addition Palmer Luckey, Facebook’s CEO Mark Zuckerberg also stated that Oculus Rift was developed to take gaming beyond horizons and it will continue to do so within Facebook:

“We’re going to focus on helping Oculus build out their product and develop partnerships to support more games. Oculus will continue operating independently within Facebook to achieve this.”

Everything considered, fans are rooting for Oculus Connect Conference (scheduled to take place in September, 2014) where the company will unveil its plans for future.

All these scenarios have shaken up Oculus Rift’s fan base to some extent and people are also keeping an eye out for Sony’s VR headset, Project Morpheus.

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