The social marketing giant Facebook is back making splashes in the news, as the company recently acquired Oculus VR, a small company based in Irvine, California. Oculus VR specializes in virtual reality headsets that gamers can wear to transform the gameplay. Perhaps the most staggering bit of information regarding the deal is how much Facebook paid to acquire the small company.
Facebook, co-founded by current Charmain and CEO Mark Zuckerberg in 2004, has long been looking for ways to maximize its profits by staying innovative. This is precisely why the company would pay such high dollars to acquire Oculus VR. Whether the investment will pay off going forward is yet to be seen, but Zuckerberg sees the possibilities well worth the two billion dollar acquisition.
According to Facebook, the ultimate goal of this transaction is to make the Facebook experience turn into an immersive 3D experience. That may mean that a mundane chat with Grandma over the social networking site, may turn into a magnificent display of virtual reality in which your grandmother is right there in front of you.
That may also mean a barrage of virtual reality advertisements. And this is a valid concern, as anyone who has ever used Facebook for social networking knows of the constant presence of advertisements. Many sit back and wonder if this is in the plans for Facebook, but that is just another mystery regarding what will come of the deal.
As Oculus VR was busy developing their goggles that allows the user to see solid images in 3D, Facebook was insistent on where it could take the company. Still, it is understandable if many remain skeptic over the acquisition.
There is no certainty that the future of social networking is virtual reality. This certainly will be a long term investment, as virtual reality doesn’t seem like it is catching on in the near future. Nonetheless, those at Oculus VR will surely want to be productive with the product. The Oculus acquisition is worth $400 million in cash, with 23.1 million shares that are worth 1.6 billion dollars. Oculus employees are also eligible to receive bonuses if the company hits certain goals.
This is the second time Facebook has acquired a company for billions of dollars already this year, as it paid 19 billion dollars for WhatsApp earlier this year.