May I remind you that Facebook bought whatsapp a few weeks back for $19bn, and now they've bought Oculus for $2bn, and it hasn't even released a product commercially yet. What I really want to know is who the hell is advising these guys?
Edit: My initial reaction at hearing about this was to scoff in disbelief at Facebook placing another huge bet on the roulette table, but after discovering that in response to the threat from Oculus Sony are releasing a VR headset too, and the immense consumer interest in Oculus and other VR projects on crowdfunding sites, I am starting to think this was actually a sensible acquisition after all.
http://www.businessinsider.com/facebook-to-buy-oculus-rift-for-2-billio…
You only need to read the first two paragraphs, but I'm sure rest of the article will provide much amusement too.
those guys are living legends
good acquisition imho
They're paying in stock for the most part. Did Oculus even want to sell?
WhatsApp: $19bn Oculus: $2bn
What's next?
What are you talking about man? This is prime time...
Bubble? What bubble?
Didn't Zuckerberg just say they're going to digest the Whatsapp acquisition for a bit?
need to wash it down w/ more "synergies" aka future goodwill writedowns
If WhatsApp was worth $19 billion to them then Oculus was definitely worth the $2b in mostly stock.
Zuck must have wanted a Nintendo Virtual Boy for Christmas when he was 7 and didn't get one.
Ok regardless of how these Oculus headsets are entirely unrelated to Facebook, I really need to get one. Are they commercially available yet? Anyone know what you can do with them exactly? If it really is virtual reality like some Total Recall shit, I would easily pay the $350 price tag.
apparently graphics suck, give it a few yearas
I was able to try out the oculus rift and the razer hydra in a some phd video game research, and it was extremely hard for me to control and I nearly threw up from nausea. The graphics weren't that good either. That's only me though. Some people may love it.
http://valleywag.gawker.com/oculus-grift-kickstarter-as-charity-for-ven…
Cool article here about an investor in Oculus Rift who got screwed as they don't receive any returns from this gigantic sale.
Going to be pretty interesting to see how Kickstarter works now.
Thoughts?
"Investor," aka someone who backed the Kickstarter. Did you read the article?
All I see in this thread is a band of downtrodden monkeys.
Investment bankers still sell companies, right? Cognitive dissonance is an ugly thing.
Kickstarter donors aren't equity investors in the business so they didn't get screwed, they got exactly what was listed on the Kickstarter page for their donation level: https://www.kickstarter.com/projects/1523379957/oculus-rift-step-into-t…
Felix Salmon has a pretty good write up on the acquisition.
@khayembii and @Solidarity
thanks for the info! Never donated, so wasn't too sure how it worked.
Nobody is advising them. Perhaps that is part of the problem.
http://www.bloomberg.com/news/2014-03-26/facebook-makes-2-billion-virtu…
"No bankers were involved in the deal, according to a Facebook outside representative."
What "problem" would bankers solve here, exactly?
LOL'd @ the picture
Facebook realizes that Facebook itself will not be a gold mine forever, so they are positioning themselves to be like Google - have their bread and butter (Facebook) but also have other forward looking projects to stay progressive and prevent themselves from becoming stale.
Oculus is a great acquisition where Facebook can explore with it without pressure from investors to immediately monetize off of it.
In the past we've had Microsoft vs. Apple.
In the near future we will have Google vs. Facebook. They are growing into each others backyard.
Maybe it's just me but it seems a little ironic that FB is trying to expand to be a multi-purpose technology conglomerate but they're still called FACEBOOK...ie a book of faces
It's all about looking forward. I honestly don't think it is a bad acquisition. Look at Google, they are exploring a ton of different paths and trajectories that aren't directly related to their core competencies, yet they want to make sure they stay fresh and are relevant in the future (e.g. Nest acquisition for a seat in the connected home market).
Facebook was slow to realize mobile was the platform to focus on (unlike Apple and Google who essentially shaped what it looks like today). For the past seven years it has been clear that mobile was next. We've passed that stage and mobile is now. They simply want to make sure they don't miss the next big platform/want to lead the next big platform and are taking a bet on VR. It's a risky game, but one worth playing in.
What'sApp was a bad acquisition. At first sight, this seems worse.
There's no competitive advantage at all. Even Nintendo may have more relevant patents than Oculus. What's to stop anybody from reverse engineering this, or launching a better, faster product?
SONY, AAPL, MSFT and Samsung have relationships with a lot of game and app developers. Once they get any nerd kid to build their prototype, content generators will work much faster with them. I'm pretty sure CoD and GTA are more entertaining than Farmville in virtual reality. How will Oculus/FB keep all the new entrants at bay?
Without cash flows, competitive advantages or optionality (it's not an optionality if anybody can steal your market whenever they please) this is pretty much a 2B investment in capitalized R&D. I don't think the competition will need 2B to build such a gizmo.
FB is the ultimate corporate governance disaster. They're going to buy whatever Zuck thinks it's cool until they run out of easy money. I like their main business, but their growth strategy is completely out of hand.
John Carmack has been CTO at Occulus since the late summer/early fall.
Worth $2B right there.
Well, been a good week for my FB Jan 2015 puts!
I find it really funny that a bunch of junior bankers/college kids think they are smarter than the Zuck.
Fair criticism but being a good tech guy and developing a cool and popular website doesn't mean you're a good investor. This is why you should surround yourself with people who complement your skill set by bringing something to the table that you don't naturally do, like the classic example of pairing a numbers-guy analyst type with an outgoing sales guy. Problem is, Zuckerberg's financier-in-chief is Ms. Lean-In Sheryl Sandberg.
Thanks for the monkey shit.
And yeah, I agree with you in principal. Definitely should bring people on board who have skills where you don't.
My criticism was more about how with every acquisition Facebook makes, unqualified people make criticism. Some guy who is a junior in college should not think he knows more about Facebook's roadmap going into the next decade than Zuck himself.
RE: Sheryl Sandberg. I agree with criticism people make about her feminism stuff. Obviously she is riding that wave all the way to the bank. However, I have found a lot of haters come out of the woodwork and rip into her, saying she is a clueless woman, etc. - but I would take advice from her about business way before I take any advice from them. She is worth $1BN, most of those haters are probably bringing in $50k a year. So criticism about the "Lean In" bullshit, yes I agree with that, feminism is fucking retarded, but criticism about her business moves? Not buying that.
Valve was working pretty closely with Oculus before the acquisition. There's a YouTube video somewhere of developers playing Team Fortress 2 on the Oculus Rift.
Facebook acquires Oculus VR (Originally Posted: 03/25/2014)
So after being spammed to death by Bloomberg about Oculus VR... Facebook's shopping spree continues.
http://techcrunch.com/2014/03/25/facebook-to-buy-oculus-vr-maker-of-the…
Price tag: $2bln in cash and stock.
Thoughts? To me it seems like Facebook is morphing into an internet/tech conglomerate...
Here is the official statement by Zuckmeister:
"I'm excited to announce that we've agreed to acquire Oculus VR, the leader in virtual reality technology.
Our mission is to make the world more open and connected. For the past few years, this has mostly meant building mobile apps that help you share with the people you care about. We have a lot more to do on mobile, but at this point we feel we're in a position where we can start focusing on what platforms will come next to enable even more useful, entertaining and personal experiences.
This is where Oculus comes in. They build virtual reality technology, like the Oculus Rift headset. When you put it on, you enter a completely immersive computer-generated environment, like a game or a movie scene or a place far away. The incredible thing about the technology is that you feel like you're actually present in another place with other people. People who try it say it's different from anything they've ever experienced in their lives.
Oculus's mission is to enable you to experience the impossible. Their technology opens up the possibility of completely new kinds of experiences.
Immersive gaming will be the first, and Oculus already has big plans here that won't be changing and we hope to accelerate. The Rift is highly anticipated by the gaming community, and there's a lot of interest from developers in building for this platform. We're going to focus on helping Oculus build out their product and develop partnerships to support more games. Oculus will continue operating independently within Facebook to achieve this.
But this is just the start. After games, we're going to make Oculus a platform for many other experiences. Imagine enjoying a court side seat at a game, studying in a classroom of students and teachers all over the world or consulting with a doctor face-to-face -- just by putting on goggles in your home.
This is really a new communication platform. By feeling truly present, you can share unbounded spaces and experiences with the people in your life. Imagine sharing not just moments with your friends online, but entire experiences and adventures.
These are just some of the potential uses. By working with developers and partners across the industry, together we can build many more. One day, we believe this kind of immersive, augmented reality will become a part of daily life for billions of people.
Virtual reality was once the dream of science fiction. But the internet was also once a dream, and so were computers and smartphones. The future is coming and we have a chance to build it together. I can't wait to start working with the whole team at Oculus to bring this future to the world, and to unlock new worlds for all of us."
Facebook to acquire virtual reality company Oculus for $2 billion, including $400 million in cash, 23.1 million Facebook shares.
More info: http://www.bloomberg.com/news/2014-03-25/facebook-agrees-to-acquire-dev… and http://www.businessinsider.com/facebook-to-buy-oculus-rift-for-2-billio…
Unlike the questionable $19 billion acquisition of WhatsApp, this deal to buy Oculus VR is actually quite interesting. Assuming Zuckerberg allows the existing team at Oculus VR to retain their autonomy, and as long as key personnel (especially John Carmack, who is one of the greatest creative geniuses in his field) all remain on board, I am cautiously optimistic that this deal could work out in the end.
I don't know if this is a great idea. I know that Mojang were planning to develop a Minecraft for Oculus and when then learnt that Facebook bought it they throw this idea away so....
Facebook to Buy Virtual Reality Company Oculus for About $2 Billion (Originally Posted: 03/25/2014)
This is from my Bloomberg notification, will update with further info
http://www.oculusvr.com/
Facebook to acquire virtual reality company Oculus for $2 billion, including $400 million in cash, 23.1 million Facebook shares.
http://www.bloomberg.com/news/2014-03-25/facebook-agrees-to-acquire-dev… and http://www.businessinsider.com/facebook-to-buy-oculus-rift-for-2-billio…
It's pretty funny that all those passionate Kickstarter people paid for FB's R&D.
FB has all that cash and it's not like Zberg has to get board approval for an acquisition.
It makes every sense Virtual Reality is the next big thing, and it will only get better ! Facebook is growing as company and they´re proving me wrong.
Voluptates dolorem culpa accusamus eveniet sunt beatae vitae cum. Ut vel earum aut quidem. Doloremque debitis accusantium necessitatibus ipsam sed facilis. Voluptas quam perspiciatis beatae harum quos sunt. Facilis ea et odio sed repudiandae molestias delectus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Et natus nihil sunt dignissimos. Quod nihil repudiandae blanditiis. Inventore vel debitis explicabo natus cumque. Accusamus consequuntur deserunt quas asperiores nulla consequatur sunt. Amet non quae placeat tempora magni quia quia.
Aut natus hic id sint. Modi excepturi sint et. Consequatur ducimus qui et sit quasi sed nesciunt et. Doloribus est incidunt delectus quibusdam.
Animi quis sequi id sunt deserunt corrupti earum. Consequuntur delectus aut aperiam dolorum tenetur repudiandae aspernatur. Minima odio at voluptas est optio nam. Et est quam hic perferendis est et et. Asperiores omnis quam sequi aut quidem et consequatur. In reprehenderit velit veritatis accusamus.
Culpa inventore vel omnis earum necessitatibus. Sint enim animi occaecati. Fugit quibusdam aut nisi ducimus. Ducimus ut odio corporis perspiciatis. Cum omnis quia optio id iste aut ut corrupti. Laudantium cupiditate aut temporibus blanditiis deserunt id. Incidunt corporis est quod voluptates.
Saepe porro eligendi libero sint. Blanditiis ipsum debitis dicta aut. Exercitationem quo inventore illum optio earum sit ullam.
Accusamus odio placeat culpa ut rerum nostrum. Ullam velit omnis id nisi nemo deserunt. Facere fugit et autem odio a laboriosam in. Iure officia itaque voluptates voluptatem eos fugit voluptas soluta.