How Oculus decided on its $2 billion acquisition from Facebook

Posted Apr 15, 2014

Oculus VR is a virtual reality headset company that was acquired by Facebook for $2 billion and is led by chief executive officer Brendan Iribe. Iribe spoke at a conference last week about how the deal was put together. Iribe said that he met with Facebook CEO and co-founder Mark Zuckerberg and got along well with him. 

Zuckerberg told Iribe that Facebook has the resources to help expand Oculus to a larger company. Iribe said that the number “wasn’t quite there.” This means the price that Zuckerberg said he was willing to pay.

“We did have a pretty big number in mind for a 20-month-old company,” said Iribe. Nothing happened between the two companies for a while, but then Facebook paid $19 billion for WhatsApp.

This is when Iribe “started to believe in our number a little more.” This means that Facebook would be willing to pay a big price for a company it really wants. Iribe decided to hold out for a bigger number even though the company was young.