Facebook Inc (FB) to acquire Oculus for $2 billion
Facebook Inc (NASDAQ:FB) has announced a definitive agreement to acquire Oculus VR for around $2 billion. This includes $400 million in cash and 23.1 million shares of Facebook common stock, which is valued at $1.6 billion based on the average closing price of the 20 trading days prior to March 21, 2014 of $69.35 per share. The acquisition also includes a $300 million earn-out in cash and stock based on achieving certain milestones.
Oculus is known for its virtual reality technology and it already has a strong interest from developers. Over 75,000 orders have been made for development kits for Oculus’ virtual reality headset, known as the Oculus Rift.
Facebook will be extending Oculus’ existing advantages in gaming to new verticals, including media, entertainment, communications, and education.
“Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow,” stated Facebook founder and CEO, Mark Zuckerberg. “Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate.”
Oculus will maintain its headquarters in Irvine, California and will continue developing the Oculus Rift.
[Source: FB]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry