Author Topic: Oculus Rift and Facebook  (Read 2012 times)

Offline Oreo_Blue

Oculus Rift and Facebook
« on: March 27, 2014, 03:27:27 am »
So, Facebook has acquired Oculus Rift for $2B. It causes quite a stir on the internet. I hardly ever read comments on a project that I didn't back, but the comments on Oculus Rift is quite interesting :D.
Of course I know nothing about the actual content of the deal, but from what I read from the internet, here is my personal opinion:
1. It's good for an indie hardware maker to get a $2B funding. If I am the developer of Oculus Rift, I also want to secure as much fund as I can get my hands on. Especially since the competition is going to get harder with Sony announcing Project Morpheus, and don't know what other big companies are cooking in their secret laboratories.
2. I just don't understand why Facebook? Aren't there other companies that interested in Oculus Rift? Or because Facebook offers the liberty for Oculus Rift to keep the product as open as possible (which I don't think is going to happen)?
3. I think Oculust Rift has made a mistake by agreeing to $400M in cash and $1.6B in FB stock. I don't want someone pays me with some stock that mostly declines in price. Even after the announcement, FB stock drops by 6.9%. If it's up to me to decide, I'll take at least 80% in cash.
4. The original KS project backers can yap all they want. If I am the developer of Oculus Rift, as long as I fulfill the backers reward, I've done my part of the deal. It is up to me if I want to sell my company, or even burn it to the ground.

So what are your opinions on this matter? Is there anyone here that actually back the original Oculus Rift kickstarter project?

Offline Ledabot

Re: Oculus Rift and Facebook
« Reply #1 on: March 27, 2014, 06:15:38 am »
Their must be some spice and wolf level economics going down here. I don't understand why facebook either. I also agree that the stocks might not have been the best idea. At least its not twitter.

Offline Commander Zaelthul

Re: Oculus Rift and Facebook
« Reply #2 on: March 27, 2014, 10:01:59 am »
I believe the major mistake is certainly how they arranged the purchase, 80% in stock? Anyone with any sort of common business sense would check the Facebook stock right now and can see it's plummeting.
By the time it's released that stock is probably going to be decreased to about 20% of what it originally was MINIMUM, so getting ripped off of that much money is a huge lost.
However the outrage of the company behind the purchase is somewhat understandable, but I'm more concerned with the earlier point.
I know I'm sounding like a broken record but I'm trying to empathize the point that there's some fishy business goings around in my opinion but I'm just being cynical here.
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Offline Vaendryl

Re: Oculus Rift and Facebook
« Reply #3 on: March 27, 2014, 12:04:05 pm »
that news was such a punch in the gut :(

I'd take the 2 billion too, youknow. But seriously. fuck. what a shame.

such high hopes and now we'll get to staple FB ads to our face and play farmville in 3d on an HMD meant for laptops.
sigh. I guess I'll just have to save up for some zyngabucks, aren't I?  >:(

I'm just happy I'm not one of the people who backed the KS. compared to them I don't know the meaning of disappointment.
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Offline Aggressive Pacifist

Re: Oculus Rift and Facebook
« Reply #4 on: March 27, 2014, 05:57:21 pm »
Hello! I've been following this forum for a while now and I've made an account today, I'm a fan of mecha games and anime, and I'm a backer of Project Nimbus.
Personally I feel sorry for the original backers of the Oculus Rift, they donated their money only for it to feel pointless dwarfed by Facebook, although I'm not saying it was the wrong path to take. Apparently a version of Minecraft for the OR was in the works, but when the developers heard about Facebook, it was cancelled.
"Don't be distracted by the what-ifs, should-haves, and if-onlys. The one thing you choose yourself - that is the truth of your universe."
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Offline Endershadow

Re: Oculus Rift and Facebook
« Reply #5 on: March 31, 2014, 04:57:21 am »
Apparently a version of Minecraft for the OR was in the works, but when the developers heard about Facebook, it was cancelled.

Hahaha! I don't know why I find that hilarious, but I do.

Please be careful not to fall into any holes in reality caused by my reality hole generator. If you do fall in though, I can assure you that there will be no adverse side effects except for the following: instantaneous mutation, loss of 1 or more vital organs, turning into banana pudding, amnesia, loss/growth of 1 or more limbs, additional vital organs, loss of DNA, insanity, hallucinations, destruction of the fabric of space and time, redundancy, redundancy, a craving for apples, the ability to see shinigami, for females: an erection lasting more than 4 hours, for males: extremely painful menstrual cramps, testicular inversion, gender swapping, the urge to watch my little pony, and/or death

Offline Aggressive Pacifist

"Don't be distracted by the what-ifs, should-haves, and if-onlys. The one thing you choose yourself - that is the truth of your universe."
-Kamina

Offline Kuroneko

Re: Oculus Rift and Facebook
« Reply #7 on: April 03, 2014, 10:14:27 pm »
As much as I dislike Facebook, I'm not gonna rage like some angry child about it.

Offline sam6321

Re: Oculus Rift and Facebook
« Reply #8 on: April 04, 2014, 09:19:42 am »
I haven't looked into it, but I can't immediately see the appeal that Facebook could have for a technology like that.
It seems like something Google would be more likely to buy up imo.

On a side note, I can't use my rift for more than like 20 mins without wanting to vomit :|
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Offline Vaendryl

Re: Oculus Rift and Facebook
« Reply #9 on: April 04, 2014, 05:14:31 pm »
I haven't looked into it, but I can't immediately see the appeal that Facebook could have for a technology like that.
It seems like something Google would be more likely to buy up imo.

On a side note, I can't use my rift for more than like 20 mins without wanting to vomit :|
as I hear devkit2 makes people a lot less sick and the goal would be for the consumer release to be even better.
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Offline BlackZero

Re: Oculus Rift and Facebook
« Reply #10 on: April 04, 2014, 06:02:21 pm »
Well, I guess my magnets will be more effective as time passes.
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Offline Lord Gorchnik

Re: Oculus Rift and Facebook
« Reply #11 on: April 04, 2014, 06:17:28 pm »
While Lord Gorchnik would be more than happy to explain the marketing and economic reasons behind it, I would go into a 10 page report and government work is calling right now.  Needless to say, even the powerful Facebook doesn't have 80% (or 1.6B) in liquid assets (read: cash) to just hand out to the devs of Occulus Rift. 

If you do some research on acquisitions and licensing in ALMOST any market you will see that generally the deals end up using some other sort of collaborative whether it is stock, a seat on the board, new employee acquisitions, etc.  Cash is great of course, but most of the time the two (or more) companies involved are looking for something a little more that can help them in the long-run.

That being said, I have never had interest in the Occulus Rift.  I've tried it, own(ed) it, talked to other developers and colleagues about it, and personally don't think the it is the right time yet for it to be here.  Lord Gorchnik has no doubt whatsoever though that come another 3-4 years we will be seeing many more mass produced VR/Simulation models on the market.

Offline BlackZero

Re: Oculus Rift and Facebook
« Reply #12 on: April 04, 2014, 06:34:46 pm »
While Lord Gorchnik would be more than happy to explain the marketing and economic reasons behind it, I would go into a 10 page report and government work is calling right now.  Needless to say, even the powerful Facebook doesn't have 80% (or 1.6B) in liquid assets (read: cash) to just hand out to the devs of Occulus Rift. 

If you do some research on acquisitions and licensing in ALMOST any market you will see that generally the deals end up using some other sort of collaborative whether it is stock, a seat on the board, new employee acquisitions, etc.  Cash is great of course, but most of the time the two (or more) companies involved are looking for something a little more that can help them in the long-run.
I didn't know that but that's good thing to know.

That being said, I have never had interest in the Occulus Rift.  I've tried it, own(ed) it, talked to other developers and colleagues about it, and personally don't think the it is the right time yet for it to be here.  Lord Gorchnik has no doubt whatsoever though that come another 3-4 years we will be seeing many more mass produced VR/Simulation models on the market.
Sadly the best selling apps are porn apps. Google tried to ban then and realized it wasn't a good idea.
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Offline Oreo_Blue

Re: Oculus Rift and Facebook
« Reply #13 on: April 04, 2014, 07:10:13 pm »
If you do some research on acquisitions and licensing in ALMOST any market you will see that generally the deals end up using some other sort of collaborative whether it is stock, a seat on the board, new employee acquisitions, etc.  Cash is great of course, but most of the time the two (or more) companies involved are looking for something a little more that can help them in the long-run.

That's is true, but I wouldn't want Facebook to pay me with 80% stock. Facebook stock price is pretty much unstable anyway.

Offline Lord Gorchnik

Re: Oculus Rift and Facebook
« Reply #14 on: April 04, 2014, 07:17:24 pm »
If you do some research on acquisitions and licensing in ALMOST any market you will see that generally the deals end up using some other sort of collaborative whether it is stock, a seat on the board, new employee acquisitions, etc.  Cash is great of course, but most of the time the two (or more) companies involved are looking for something a little more that can help them in the long-run.

That's is true, but I wouldn't want Facebook to pay me with 80% stock. Facebook stock price is pretty much unstable anyway.

No real stock ever is.  I will admit though if I was in charge of that deal I would not accept 80% stock as collateral for my business.