They Did What? Facebook Drops $2 Billion on Virtual Reality Company

Since going public almost two years ago, Web 2.0 darling and social media giant, Facebook, has overcome some hurdles in order to please Wall Street. Throughout this time remaking itself as a profit making social media platform (in a way that matches Wall Steet’s expectations), the company has made quite a few purchases to shore up its offerings to consumers and users.

Recently, Facebook has made news for the prices it has been paying for purchases it sees as vital to maintaining the platform’s dominance on the web. Zuckerberg’s Facebook purchased the messaging app, WhatsApp, for an unprecedented $19 billion. This deal turned the heads of many web enthusiasts. Before WhatsApp, Facebook bought Instagram for about $1 billion, a price tag that now seems paltry compared to the WhatsApp purchase.

However, Facebook has also made some purchases that may just make users scratch their heads instead of turning them. Facebook is planning to buy a drone company for $60 million, and just recently, they announced the purchase of virtual reality company, Oculus VR, for $2 billion.

Yes you read that right, Facebook just bought one of the most promising virtual reality companies operating today. However, given Oculus’ history as a user-supported start-up, the company has received a great deal of blowback for agreeing to the deal with Facebook. Thousands have cancelled their pre-orders and are posting on other social platforms about how Oculus sold out.

Facebook itself took a hit from Wall Street. Its stock fell 7% after the deal was announced. No one is quite sure what Facebook and Zuckerberg have planned for Oculus, or how much independence the company will have. Could VR be the next step for the web? Does Facebook see itself as instrumental and vital in making the change? It will probably be a few years before we see what comes of this acquisition.

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