Facebook Acquires Oculus for Around $2 Billion, Updates Lookalike Audiences

Facebook is purchasing virtual reality technology start-up Oculus VR for $2 billion.

Facebook has acquired Oculus VR, the company behind the Rift headset, for around $2 billion. The deal includes $400 million in cash and $23.1 million in stock.

The Oculus Rift project was launched on Kickstarter on 1 August 2012 to revive a technology that attempted to reach the market over a decade previously. Trying to succeed where many had failed, it had a rather modest campaign goal of $250,000. Within 24 hours, Oculus VR had raised $670,000 from 2,750 people, and within three days it had hit $1m.

Why buy Oculus? Facebook’s move indicates the social media giant’s ambition to tap into what might be the next big thing in gaming, as evidenced in a statement by the company’s founder and chief executive Mark Zuckerberg. “Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow,” he says. “Oculus has the chance to create the most social platform ever, and change the way we work, play, and commute.”

As part of the deal, Facebook plans to extend Oculus’ advantage in gaming, to communications, media, and entertainment, as well as education, among others.

The purchase is expected to close in the second quarter of 2014.

The Oculus deal comes hot on the heels of another Facebook update that was announced earlier today. The social network is expanding lookalike audiences capabilities to now allow advertisers to create lookalikes based on people who visit their websites, use their mobile apps, or are connected to their Facebook Pages. Previously, advertisers could only create lookalikes based on existing information like email addresses, phone numbers and user IDs.

Now, it’s easier for advertisers to:

  • Find more people who look like their website visitors – Advertisers can use data from their Facebook pixels to reach people who are similar to those who previously made purchases on their website.
  • Find more people who look like their mobile app users – They can create lookalike audiences based on people that have used their mobile app such as people who’ve downloaded songs from their music app or have made purchases via their shopping app in the past.
  • Find more people who look like their Facebook fans – Now, advertisers can increase the number of fans connected to their Page by creating lookalike audiences based on their current fans.

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior
Whitepaper | Mobile

US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups
Whitepaper | Analyzing Customer Data

Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people
Whitepaper | Digital Marketing

Learning to win the talent war: how digital marketing can develop its peopl...

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy
Report | Digital Transformation

Engagement To Empowerment - Winning in Today's Experience Economy

1m

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource