Facebook Acquires VR firm Oculus for $2B

Facebook is on an acquisition binge. This one has me scratching my head…

Oculus

Facebook has been on an acquisition binge recently. Just the other day, it announced that it would buy VR developer Oculus VR for $2.0B. A few weeks ago, it announced it was acquiring the mobile messaging application WhatsApp for $19.0B. Apparently, it has cash to burn…

The Oculus deal includes $400M in cash, and $1.6B in stock. If all goes well for Oculus, post-acquisition, its employees could receive another $300M in incentive bonuses if specific, undisclosed targets are reached. Oculus was made famous due to its crowd-funded start on Kickstarter, where it received approximately $2.4M in funding.

While it has yet to release a product, Facebook’s Mark Zuckerberg indicated his company’s interest and commitment in the organization by saying that, “mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow. Oculus’ technologies could “change the way we work, play and communicate.” Facebook is planning to use the acquired company and its virtual reality technology to expand its “communications, media, entertainment, education and other areas.”

While Facebook is happy with the development, the rest of the world – or at least part of it – clearly isn’t. Markus Persson, the creator of the popular block-building game, Minecraft, said he WAS in talks with Oculus to bring the two together, but has since killed the deal. According to Persson, “Facebook creeps me out.”

Other developers are taking similar actions. One developer said, “I am really upset by this. I had nothing but grief as a developer of Facebook titles, and the direction and actions of Facebook are not ones I can support.” It’s not all doom and gloom, however, some think that Facebook could help Oculus monetize the Rift and make it successful.

Personally, I have my doubts. Weird Facebook stuff aside, I am seriously wondering how a social networking company, even one as successful as Facebook, can marry its core competencies with software that requires VR hardware AND your computer or other computing device in order to create an integrated experience. To me, this just seems really clunky and doomed to failure.

Currently, the user integration paradigm – computing device (PC, smartphone or tablet), web browser or app and user – don’t provide for an elegant way to incorporate any other kind of hardware or interim device. From my perspective, the big time of Facebook games like Farm Town or Farmville are long gone. That was SO 7 years (2007) ago… Like the WhatsApp acquisition, I have no idea what Facebook intends to do, or what they think they’re going to gain, other than, perhaps to keep some other company from acquiring it.

With WhatsApp, its purchase was redundant. They already have Facebook Messenger; and have indicated that they don’t have any plans on bringing it and Facebook Messenger together, either now or in the future. In my mind, that acquisition was purposefully executed to keep Google (and its competing social network, Google+) from getting their hands on the intellectual property.

What do YOU think of this development? Is this something that works for you, or is it something creepy? I know I always ask you guys for your opinion, but this time I really would like you to chime in. What do you think? Good? Bad? Indifferent? Tell me what you think in the comments section below and let’s see if we can sort this one out.

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