News – Page 109 – The Daily Juice

In a landmark deal, Facebook announced its acquisition of virtual-reality startup Oculus VR for an unprecedented $2 billion. This amount includes 23.1 million shares of common Facebook stock and $400 million in cash. The acquisition was valued at $1.6 billion based on the average closing price during the 20 days prior to March 21, 2014. It also includes an additional $300 million earned out in stock and cash based on the achievement of specific milestones. Oculus began as a start-up by hardware enthusiast and modder Palmer Luckey. It received funding for research and development through a highly successful Kickstarter campaign that was initiated in 2012. Soon after, it received the attention of John Carmack, the father of the first-person shooter, who stepped in as Chief Technology Officer (CTO). https://www.youtube.com/watch?v=DhcOMOWRMnA This new and upcoming virtual reality technology company has quickly emerged as a global leader in its field, receiving over 75,000 orders for development kits for its premier product, the Oculus Rift headset. Currently, applications are primarily focused on gaming, as that was the key focus behind the creation of the product. However, features for other industries are in the early stages, and Facebook will soon expand the Rift's functionality to education, communication, entertainment, and other forms of media. In spite of the substantially improved funding from a large organization that will help the Rift to develop and flourish into a high-quality consumer product, many followers in the community have expressed complaints about the acquisition. The official subreddit for r/oculus has seen massive toxicity, with members going so far as to threaten the developers for "selling out." Oculus will continue to maintain headquarters in Irvine CA, continuing to develop the platform that is the Oculus Rift. This transaction will close in the second quarter of 2014.