Facebook Down 6% After Purchase Details Revealed
Let's be straightforward - the only person that seems to like the purchase of Oculus VR (the maker of the Oculus Rift, which is a virtual reality headset) is Mark Zuckerberg himself.
Investors don't like the deal, as shares of Facebook are down over 6% today. Many feel as though Facebook overpaid for the company and that the technology doesn't fit Facebook's long-term vision.
The people who backed the company via a 2012 Kickstarter campaign are almost uniformly against the deal, with many claiming that the company sold out and turned its back on the company's early supporters.
Proponents of virtual reality headsets are also shocked by the news, with many openly hoping for another company to step in and fill the void that they say Oculus VR will now leave.
Gamers are also not happy with the news, with the makers of the ultra-popular game Minecraft announcing that they will no longer be pursuing an integration of their game with the Oculus Rift.
In short - the deal has been almost universally panned from every angle.
Why the outrage?
Many are worried that the Oculus Rift, which held so much promise for gamers and others, will now become stifled by an ad-happy Facebook.
If you use an Oculus Rift to try and play a game, will you have to sign in to your Facebook account first? Will advertisements be served as you try to use the device? Will companies want to work with Oculus VR and integrate their products with the device if Facebook is calling the shots?
Mark Zuckerberg has some big plans for the company that Facebook shelled out $2 billion for, stating that the device has uses far beyond the world of gaming. What if, Zuckerberg said, you could put on the device and feel like you are watching a basketball game from courtside?
The rest of the planet, however, seems to distrust Facebook and their intentions for Oculus VR, which has developed a massive following over the past number of years. Will their concerns be justified?
Filed under: General Market News