Newsletters
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...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Communications
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
Is Zuckerberg Nuts To Spend $2B on Oculus VR?
Is Zuckerberg Nuts To Spend $2B on Oculus VR?

By Jennifer LeClaire
March 26, 2014 10:29AM

    Bookmark and Share
The Oculus Rift has huge potential as a gaming platform, said analyst Greg Sterling, but he'll wait and see whether Facebook can further develop and popularize virtual reality as a communications and entertainment platform. He said Facebook's deal to buy Oculus VR for $2 billion is "a big speculative bet that VR can become a mainstream phenomenon."
 



In a move that sparked one analyst to call CEO Mark Zuckerberg "nuts," Facebook is acquiring Oculus VR, the immersive virtual reality technology company. The price is about $2 billion, which includes $400 million in cash and 23.1 million shares of Facebook common stock.

Whether or not Zuckerberg is nuts, as Roger Kay, principal analyst at Endpoint Technologies Associates, insists, remains to be seen. One thing is certain: 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.

"Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow," Zuckerberg said. "Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."

Virtual's Role in Social Media

Zuckerberg seems utterly convinced. He must be, or he wouldn't be investing $2 billion in the company. 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.

The big picture for Facebook is that virtual reality technology is a strong candidate to emerge as the next social and communications platform. Brendan Iribe, co-founder and CEO of Oculus VR, certainly believes that.

"We believe virtual reality will be heavily defined by social experiences that connect people in magical, new ways," Iribe said in a statement. "It is a transformative and disruptive technology, that enables the world to experience the impossible, and it's only just the beginning."

We caught up with Greg sterling, principal analyst at Sterling Market Intelligence, to get his take on the mega-buy. He pointed out to us that Facebook called virtual reality "the platform of tomorrow."

"The deal is mostly stock so it's not quite as expensive to the company as it appears," Sterling said. "Still, it's a big speculative bet that VR can become a mainstream phenomenon."

Zeus' Lightning Bolt

From Sterling's perspective, Oculus VR has huge potential as a gaming platform -- but he'll wait and see whether Facebook can further develop and popularize VR as a communications and entertainment platform.

"I suspect there will be many useful enterprise and commercial applications of VR over the next several years, even if it doesn't capture the public's imagination," Sterling said. "It's also interesting as a further step into the 'real world' for Facebook and especially in the context of Facebook seeing itself as a mobile-first company.

But Kay's not buying -- and he believes Facebook should not have, either. The company has no revenues, no product on the market and unproven technology, he said.

"My conclusion on the Oculus deal: I guess we have to expect arbitrariness from Masters of the Universe," Kay quipped. "Facebook's purchase of Oculus is like Zeus killing a few random people with a lightning bolt; it's just something to do on a Tuesday afternoon."

Oculus will maintain its headquarters in Irvine, Calif., and will continue development of the Oculus Rift. The transaction is expected to close in the second quarter of this year.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Communications
1.   FTC Wants Fix for Mobile Cramming
2.   Call Center Training: Tips for Success
3.   Avaya Pressing Hard on Cloud-Based UC
4.   Verizon Boosts FiOS Upload Speeds
5.   Bell Labs Pushes Copper to 10 Gbps


advertisement
Call Center Training: Tips for Success
Hire right, role play, and keep it real.
Average Rating:
FTC Wants Fix for Mobile Cramming
Overcharges are 'the perfect scam'.
Average Rating:
Avaya Pressing Hard on Cloud-Based UC
Provides easier, faster provisioning.
Average Rating:


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

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 

Mobile Technology Spotlight
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 
BlackBerry Buys German Security Firm Secusmart
Looking to burnish its business reputation, BlackBerry has agreed to buy a German mobile security company that specializes in voice/data encryption as well as anti-eavesdropping solutions.
 
Stanford Researchers Report Battery Breakthrough
Stanford researchers have found a way to use lithium in a battery's anode, a breakthrough that could triple capacity and has been described as the "holy grail of battery science."
 

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.