Oculus VR acquired by Facebook for $2 billion

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Earlier this morning, Facebook announced they have acquired virtual reality headset maker Oculus for $2 billion, in a move to add VR to their portfolio of future projects and make sure the team can make their commercial product.

The move is an interesting one, it appears to have stemmed from Oculus not wanting to try for another funding round and Facebook eager to help the startup gain commercial presence in the VR market.

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The deal is split into two parts, $400 million cash and $1.6 million in common Facebook stock. Facebook has also added incentives onto the deal, $300 million if performance from Oculus exceeds expectations.

Mark Zuckerberg, the CEO of Facebook, expressed that Facebook wants to be part of the social landscape Oculus and others are creating and believes virtual reality is the future of social experiences.

Palmer Luckey, the founder of Oculus VR, said the acquisition will not interrupt day to day work at the startup and there will be no forced integration with Facebook. It appears Facebook will take a hands off approach to the Oculus Rift, allowing it time to mature into an actual consumer product.

It is obvious Facebook is not in the virtual reality business for the gaming, despite some saying Facebook will plague the Oculus store with mobile apps. We believe this is a long term investment, for a time when virtual reality connects hundreds of people in a unique environment together.

The idea of actual virtual reality, outside a video game, is almost too futuristic for some of us to comprehend. Imagine stepping into a server on the Mars space station or a new planet and the way Facebook makes revenue is off interactive advertisements actually placed on the landscape.

We believe this is the end goal of Oculus, currently we are seeing some impressive titles and ports put onto the VR headset, but have yet to see an immersive experience without controls, something we hope to see in the upcoming months.

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