Facebook Stock Drops 7% In Wake Of Oculus Acquisition
Online corporation Facebook is noticing a slight pushback from its recent acquisition of the Oculus Rift company, as its stock has dropped by seven percent. Their shares are now worth $60.38 a piece, which is a decline of $4.51.
Earlier this week, Oculus Rift was bought for $2 billion, which was separated between $400 million in cash and the remainder in 23.1 million Facebook shares, estimated at $1.6 billion. If you’ve been paying attention; the deal is now immediately worth a lot less.
There’s an extra $300 million waiting for Oculus if they meet with performance milestones however.
This is perhaps a more important blow for Facebook than the current resistance met from the gaming community, which wasn’t too pleased with the acquisition. Shareholders aren’t limited to one single community, meaning a general lack of interest for the company’s interest in virtual reality.
When the news first came out, Oculus Rift supporters weren’t unanimously enthused. One notable event saw the creator of Minecraft come out to say a project to bring Minecraft to Oculus Rift had been cancelled as a direct result of Facebook’s presence.
Oculus Rift started as a Kickstarter project, which well exceeded its original goal.
Prior to this acquisition, Facebook bought the WhatsApp application for $16 billion. That makes buying some headsets look like a small thing.
Both Facebook and Oculus VR, the company behind the machine, are currently actively campaigning to reduce the backlash. This dip in stock value could well be temporary.