Facebook has acquired Oculus in a $2 billion deal. But, how does the deal benefit investors and consumers? More often than not small fledgling start-ups lack the resources to undertake extensive research and development and largely depend on venture capital funding.
The acquisition of Oculus by Facebook would ensure more resources to the company which would be able to further its ambition to provide products faster and cheaper.
Oculus CEO Brendan Iribe had this to say in a recent interview, “When you look at this and where it’s all going, the hardware business requires a lot of investment. It’s very hard, it’s very expensive, and ramping up hard on any given platform, whether it’s a console or any kind of PC or mobile device, going into the hardware business requires a lot of investment.”
Clearly, a smaller company does need a lot of money and investments and this is where Facebook might be able to help Oculus, particularly with resources. This would make products cheaper, better and faster for the end consumer, with more available resources for research and development.
Iribe said in a recent press release, “We believe virtual reality will be heavily defined by social experiences that connect people in magical, new ways. It is a transformative and disruptive technology, that enables the world to experience the impossible, and it’s only just the beginning.”
Oculus is a leader in immersive virtual reality technology and has already built strong interest among developers, having received more than 75,000 orders for development kits for the company’s virtual reality headset, the Oculus Rift.
The Oculus Rift was recently nominated for Best of E3 Game Critics’ Awards two years in a row, winning in 2013 for “Best in Hardware/Periphery.” Gaming analysts have described it as one of the most exciting developments in the gaming industry.
The acquisition by Facebook will only add more value to investors and consumers alike.