Did Oculus Rift just go from the most revolutionary gaming product in years to a glorified Farmville simulator? Probably not, but there’s a good chance Facebook has some ideas on how to expand Oculus’ target audience a bit.
Facebook today announced that it has reached a definitive agreement to acquire Oculus VR, Inc., the leader in immersive virtual reality technology, for a total of approximately $2 billion. This includes$400 million in cash and 23.1 million shares of Facebook common stock (valued at $1.6 billion based on the average closing price of the 20 trading days preceding March 21, 2014 of $69.35 per share). The agreement also provides for an additional$300 million earn-out in cash and stock based on the achievement of certain milestones.
The announcement seems to have come out of left field today that Facebook is buying Oculus for $2 billion + 300 million in milestone bonuses. This is incredible and somewhat troubling news for Oculus for sure. Is Oculus still the company we’ve come to love now that it’s owned by a company we’ve come to hate? Time will tell.
Read the full press release here.