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
Personal Tech
Register for a certification exam.
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:



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.


 Personal Tech
1.   Virgin Mobile Offers Custom Plans
2.   OkCupid Experiments with Daters
3.   Verizon Throttling Data Speeds
4.   Civil War Battle Sites Get Mobile App
5.   Protect Yourself from Identity Theft


advertisement
OkCupid Experiments with Daters
Unethical without user consent?
Average Rating:
Facebook Social Experiment Irks Us
Secretive test was legal, but ethical?
Average Rating:
Protect Yourself from Identity Theft
Even if your data was compromised.
Average Rating:


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

Network Security Spotlight
Tor Internet Privacy Service Warns Users It Was Breached
You may never have heard of the Tor Project, but the Internet privacy service is making headlines. Tor’s devs say users might be victims of an attack launched against the project earlier this year.
 
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
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.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
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.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

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.