Facebook buying Oculus VR virtual-reality company for $US2 billion

CEO Mark Zuckerberg called virtual reality one of the 'platforms of tomorrow'

Facebook has reached a surprise deal to buy Oculus VR, developer of the Oculus Rift virtual-reality headset, for about $US2 billion, according to the social network.

The announcement puts Facebook into one of the most-talked-about new markets this year. Sony has also made moves into virtual reality lately, as has Google with its Project Tango.

Facebook said it has signed an agreement to buy Oculus for $US400 million in cash and 23.1 million shares of Facebook stock, worth about $US1.6 billion. It expects the deal to close by midyear.

"Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow," Facebook CEO Mark Zuckerberg said in a statement. "Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."

Oculus has built a strong interest among software developers, with about 75,000 orders placed for the developer kit for its Oculus Rift headset.

The applications for virtual reality are just emerging, Facebook noted, and with Oculus it plans to tackle areas such as communications, media and entertainment, and education.

"Virtual reality technology is a strong candidate to emerge as the next social and communications platform," it said.

Oculus will keep its headquarters in Irvine, California, and continue developing Oculus Rift.

It's Facebook's second big acquisition of the year. Last month it said it would buy the WhatsApp messaging app for as much as $US19 billion.

James Niccolai covers data centers and general technology news for IDG News Service. Follow James on Twitter at @jniccolai. James's e-mail address is james_niccolai@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Is customer segmentation dead?

Ginni Rometty, the CEO of IBM, announced the death of customer segmentation five years ago saying, "The shift is to go from the segment to the individual. She might have been a bit premature for most marketers, but if customer segmentation isn't dead yet, it's definitely on life support.

Richard Taylor

Senior digital strategist, Spinach

How people buy brands

Andrew Ehrenberg was a giant in the field of marketing science. He believed scientific methods could reveal law-like patterns of how people buy. In this post, I summarise one of Ehrenberg’s most important discoveries and its implications on how people buy brands.

Kyle Ross

Strategist, TRP

Is artificial intelligence riddled with bias?

The purpose of Artificial Intelligence (AI) has always been to replace the menial and repetitive tasks we do each day in every sector, so that we can concentrate on doing what we do best. Saving time and money has certainly been a decent outcome as AI infiltrates the business landscape, however, now we are starting to see problems that cause major issues in practice.

Katja Forbes

Founder and chief, sfyte

At the deeper levels of artificial intelligence, computing machines make all kinds of correlations among whatever data is available to th...

Fraction Tech

Is artificial intelligence riddled with bias? - Customer Design - CMO Australia

Read more

https://myiplookup.com/ - find your ip address and location information in our main page. Also there are many ip tools you can use : IP L...

savefrom

iSelect outlines new approach to arrest ineffective marketing as its reports full-year results

Read more

https://myiplookup.com/ - this website will allow you to View Alexa Ranking and graph Check http headers of a website, tool to compare te...

savefrom

The Star's first CMO creates all-new marketing team

Read more

Good tips to follow. Thank you!

Anna Travis

5 things every business can do to drive brand loyalty

Read more

Thank you! That was useful to know.

Belia Adam

Why your best social marketing brand tool could be hiding in plain sight

Read more

Latest Podcast

More podcasts

Sign in