Boston, MA 04/10/2014 (wallstreetpr) – Facebook Inc (NASDAQ:FB) will buy Oculus VR for $2 billion.The transaction includes $400 million cash and 23.1 million shares of Facebook at a price of $69.35 (valued at $1.6 billion). Oculus develops a virtual reality headset (Oculus Rift) that allows users an actual environment. The market accepts the product for gaming that gives 3D experience to customers.
Why
Facebook Inc (NASDAQ:FB) aims to improve its social platform from mobile apps to a new application such as virtual reality (VR). The Company believes that the new technology will change social networking platform to communicate and share experiences. It plans to develop potential market for Oculus Rift in immersive gaming and expand over communications and social networking.
What is VR technology
VR will merge real world with computer data that will change user experience. Industries like medicine, engineering and manufacturing have tested the technology to simulate and design products for multiple applications. Currently, it is used by developers to design for gaming with headset, goggles, and contact lens. However, the technology is yet to explore potential applications over communications, media, entertainment and education.
The increasing use of high-speed internet connectivity over smartphone will drive the market for VR technology and their applications. MarketsandMarkets also estimates the immersive virtual reality market continues to grow with increasing applications in many areas and expects to reach $407.5 million by 2018.
What next
Oculus is a leader in immersive VR technology with more than 75,000 orders to develop Oculus Rift. With increasing applications over different areas, the technology is now creating more interest among developers. Facebook believes that the technology will provide a solid platform for social and communications.
The new app will further enhance its networking services along with improved mobile app. So, Facebook Inc (NASDAQ:FB) expects growth opportunities through Oculus due to leading position in social networking with 1.2 billion users.
