Facebook Inc. scored its second-largest acquisition in 2014 after it agreed to acquire Oculus VR Inc. in a deal estimated to 2 billion dollars in cash and stock.
Facebook Inc. made an official announcement revealing that it has agreed to purchase Oculus VR Inc., which is one of the newest virtual-reality eyeglasses manufacturers and is commonly known for making its Rift device, which can be worn by users when playing games. According to Facebooks statement, the company will pay 400 million dollars in cash and 23.1 million shares to acquire Oculus, plus an additional 300 million dollars in case Oculus manages to meet certain targets.
It became clear that the company is aiming at producing wearable hardware, which also means that it is entering a long-term and fierce competition with Google Inc. following its ambition to connect people across the world via a variety of devices.
As reported by the Wall Street Journal, the Chief Executive Officer of Facebook Inc. – Mark Zuckerberg said in the companys statement: “Were going to make Oculus a platform for many other experiences. Imagine enjoying a courtside 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.”
Bloomberg also cited part of Mr. Zuckerbergs statement: “Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow. Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate.”
Facebook Inc. also explained in its statement that it intends to have Oculus operating as an independent unit of the company, similar to Instagram and WhatsApp management.
One of the partners in Spark Capital, an Oculus investor – Nabeel Hyatt, commented for the Wall Street Journal: “If you look at the pattern of Zuckerbergs last two large acquisitions, I think you can probably see how he is going to handle a team like Oculus.”
Facebook Inc. rose by 1.23% on Tuesday to close the session at $64.89 per share, marking a one-year change of +158.21%. The largest social network is valued $165.45 billion. According to CNN Money, the 40 analysts offering 12-month price forecasts for Facebook Inc. have a median target of $74.00, with a high estimate of $90.00 and a low estimate of $60.00. The median estimate represents a +14.04% increase from the last price of $64.89.
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