News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
World Wide Web
Gartner's #1 for endpoint backup
Average Rating:
Rate this article:  
Facebook's $2B Oculus Buy Angers Users

Facebook's $2B Oculus Buy Angers Users
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

Some Oculus Rift users have no idea how to make sense of Facebook's $2 billion acquisition of the virtual reality company. However, some users are concerned that Facebook will use highly sophisticated metadata collection of Oculus Rift users for profit.
 


Social media giant Facebook’s $2 billion Oculus VR acquisition is sparking some strong reactions. One analyst suggested CEO Mark Zuckerberg was nuts and the company’s stock is trending down in morning trading. Oculus VR supporters aren’t happy, either.

Let’s review: Oculus is developing as a heavy hitter in immersive virtual reality technology. The company has established plenty of interest among developers, having posted more than 75,000 development kit orders for the Oculus Rift, its virtual reality headset.

Facebook is betting about $2 billion on the virtual reality technology and hopes to change the future of social media with it. But it’s not an all-cash deal. Facebook is forking over $400 million in cash and 23.1 million shares of its common stock. So why are people so upset?

“What in hell was the point of Kickstarter if you sell out to a giant company like Facebook? This is very disappointing. I will no longer be supporting the Oculus Rift in any way,” said Kickstarter campaign user Mike Cooper on the project's Kickstarter comment board. Another commenter, Adam Willis, agreed it’s a “terrible idea.”

The Future of the Web

Ray Young, an analyst at investment banking firm Sterne Agree, is taking a different view. He told us the acquisition is strategic and aimed at the future of computing and the future of the Web.

When he looks at the deal from Facebook’s perspective, he can see why the company believes virtual reality has the potential to become the most social platform ever in the next five to 10 years as the world evolves beyond the mobile platform.

“We think the rationale is if Facebook can own the pipe, the platform or the operating system of the future, it will have much greater control over its destiny,” Young said. “We believe Oculus has some of the most talented people in the field.”

Oculus Not Flinching

Zuckerberg is certainly convinced. The company announcement noted that several industries beyond gaming are experimenting with virtual reality technology. Facebook aims to extend the technology into some of those verticals, including communications, media and entertainment, and education.

So far, Oculus VR has been known mostly for its traction in the gaming industry. Still, many of the startup's early supporters are downright disappointed, not so much because the company is going beyond gaming but because, they believe, the company sold out.

Young was on the conference call Facebook held to address the acquisition. He said Facebook made it clear that while Oculus VR’s Rift virtual reality headset is becoming popular with developers, ultimately, the business model would generate revenue through software and services and also advertising.

“I have no idea how to make sense of this at this point,” a user named Richard Bettridge wrote on Oculus VR’s Web site after the announcement. “I have no doubt no matter what this means, for sure they will use highly sophisticated metadata collection of users for profit.” Facebook could not immediately be reached for comment on that view.

In any case, Oculus VR’s founders aren’t flinching at the criticism or worried about the future. “This partnership is one of the most important moments for virtual reality: it gives us the best shot at truly changing the world,” the company said in its announcement. “It opens doors to new opportunities and partnerships, reduces risk on the manufacturing and work capital side, allows us to publish more made-for-VR content, and lets us focus on what we do best: solving hard engineering challenges and delivering the future of VR.”
 

Tell Us What You Think
Comment:

Name:



Get Powerful App Acceleration with Cisco. In a world where time is money, you need to accelerate the speed at which data moves through your data center. Cisco UCS Invicta delivers powerful, easy-to-manage application acceleration for data-intensive workloads. So you can make decisions faster and outpace the competition. Learn More.


 World Wide Web
1.   Twitter May Remove Pics of Deceased
2.   Google IPO Began Decade of Big Bets
3.   Assange Talks of Leaving Embassy
4.   Russian Hacker To Be Held Until Trial
5.   Online Sites vs. Retailing in India


advertisement
OkCupid Experiments with Daters
Unethical without user consent?
Average Rating:
Twitter May Remove Pics of Deceased
Balancing privacy and public interest.
Average Rating:
Online Retailers Ponder Actual Stores
'Click-and-mortar' shops popping up.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Find Malicious Android Apps Can Hack Gmail
A new study shows that a weakness in the Android mobile operating system can be used to steal sensitive, personal info from unwitting users. Gmail proved to be the easiest app to attack; Amazon, the hardest.
 
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Feds OK $2.3 Billion IBM-Lenovo x86 Server Deal
IBM and Lenovo are celebrating U.S. approval of their x86-based server deal, having cleared some major security hurdles. The deal makes Lenovo a major player for enterprise data centers.
 
Three New Lenovo PCs Aimed at Business Users
With businesses wanting computing solutions that do more for less money, Lenovo has unveiled three new desktop PCs that it says offer solid computing at a budget-minded price.
 

Mobile Technology Spotlight
Screen Shortage Briefly Puts Brakes on iPhone 6
RAM? Check. Antenna switch? Check. Screen? Oops. Parts suppliers for Apple have found themselves facing a shortage of screens for the new iPhone 6 as next month's release date for the new smartphone looms.
 
Bounty Offered to Coders for Oculus Rift Bugs
Coders who find bugs in software for the Oculus Rift VR immersive headset could receive a reward of at least $500 under Facebook's White Hat bounty program. Facebook acquired Oculus in March.
 
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.