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...
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
World Wide Web
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Facebook
Facebook's $2B Oculus Buy Angers Users

By Jennifer LeClaire
March 27, 2014 10:24AM

    Bookmark and Share
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:



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.


 World Wide Web
1.   Tor Working To Fix Security Exploit
2.   Wall Street Journal Hacked Again
3.   Internet of Things Comes to DIYers
4.   Microsoft CEO Sees 'Bold' Plan Ahead
5.   Social Media Haters Speak Up


advertisement
Radical.FM's Freemium Biz Model
Online radio startup asks for donations.
Average Rating:
Facebook Social Experiment Irks Us
Secretive test was legal, but ethical?
Average Rating:
Tor Working To Fix Security Exploit
Bug reportedly reveals ID of users
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
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 

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.