Wednesday, March 26, 2014

Facebook To Buy Oculus VR for $2 Billion!


Today, March 26th 2014, Facebook has announced plans to purchase Oculus VR, the company behind the Rift headset, for around $2 billion in cash and stock. This includes $400 million, and 23.1 million Facebook shares.

This acquisition indicates the value of Internet of Things (IoT) and brings new platform for Social Networking, taking users of Social Networking to a new level of Virtual Reality interactions.

Oculus VR brings in multiple technologies to force. First is a wearable mobile device Oculus Rift headset, a connected device (Like Google Glass an IoT), but its a lot more involved, the Virtual Reality technology will completely immerse the users into a virtual world.

When this technology is merged with Social Networking, one can create new experiences - which was impossible before. For example, a group of friends can play a game of Soccer - Virtually!

People can meet virtually and yet have a real life like experience. Oculus makes a virtual reality technology, the Oculus Rift headset, that allows you to enter a completely immersive computer-generated environment, like a game or a movie scene or a place far away. This incredible technology makes you feel like you are actually present in another place with other people. Its unlike anything one has experience before.

Actually, this level of Virtual Reality (VR) has been used in expensive flight simulators and other military training equipment. Oculus brings that platform into a more affordable price for general public.

"I'm excited to announce that we've agreed to acquire Oculus VR, the leader in virtual reality technology," said Facebook CEO Mark Zuckerberg in a statement today.

Huge Impact on Facebook

Facebook is no tech slouch. Facebook has tremendous investments in new technologies - such as is face recognition technology called "DeepFace Program". It is also creating a host of new programming tools such as Facebook Hack.

Recently Facebook acquired WhatsApp, which brings in real-time mobile to mobile communication technology. And now with Oculus acquisition, Facebook can take this VR technology, mobile-to-mobile communication technology from WhatsApp and merge both of it to its social networking platform & with new programming tools & visual processing technology,  Facebook can create a new experiences for its users. And hope that youth of the world will continue to use Facebook, and prevent the decline in its market base.

"Over the next 10 years, virtual reality will become ubiquitous, affordable, and transformative," says an Oculus blog post. And with Oculus VR platform Facebook can change social networking forever.

Also see: 

Next Technology Disruptor: Internet of Things

Why is Facebook buying WhatsApp for $19Billion?

How to identify and create disruptive innovation that customer would buy?

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