In a deal first announced in March, the acquisition by Facebook of Oculus VR is now a done deal.
Facebook is forking over approximately $2 billion - $400 million in cash, $1.6 billion in stock that computes to about 23.1 million shares. There are milestone bonuses that could sweeten the deal by another $300 million.
Oculus has accomplished much in only two years of existence. It is widely regarded as the virtual market leader in immersive virtual reality technology. Oculus Rift virtual reality headset is the industry standard. The company has received over 75,000 orders for development kit as software builders look to capitalize on the headset's popularity.
Oculus is already well established in the gaming industry, and Facebook plans to bring Oculus technology into other industries such as communications, education, media and entertainment.
Facebook founder and CEO Mark Zuckerberg affirmed the company's forward-looking view on Oculus.
"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."
In the announcement of the deal, Brendan Iribe, co-founder and CEO of Oculus VR described the company's virtual reality products as "a transformative and disruptive technology, that enables the world to experience the impossible, and it's only just the beginning."
The Oculus Rift headset provides wearers with an immersive, stereoscopic 3D view with an ultra-wide field of view that allows for a 360-degree range of viewing.
Oculus Rift owners, gamers and developers are a loyal bunch, and the acquisition of the company by Facebook, a company that many gamers do not trust, was greeted with some grumbling and consternation.
"It's not two things that you imagine putting in the same pot," said Robin Arnott, the creator of Soundself. "It's very surprising, but I'm only excited about what that could be. I'm pretty [sure] it's not going to mean stupid free-to-play Facebook games on VR. That doesn't seem real to me."
In a response to a Reddit post by Oculus founder Palmer Luckey, comments included, "Palmer, as a die-hard fan and supporter since the first day that the Kickstarter went live. I am legitimately disappointed by this news," wrote user Soranma.
"Everyone in the world knows there's no way Facebook buying OR is 'the best' for VR," wrote Reddit user wartzilla.
