Facebook Inc (FB) And Oculus Deal Receives FTC Approval


The transaction of Facebook Inc (NASDAQ:FB) to acquire Oculus VR Inc., the maker of virtual reality goggles, was approved by the Federal Trade Commission (FTC), according to reports from Reuters.

Facebook Inc (FB) And Oculus Deal Receives FTC Approval

Last month, the social network giant announced its definitive agreement to acquire the maker of virtual reality goggles for approximately $2 billion in cash and stock as part of its initiative in seeking new growth opportunities for the future.

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Currently, Oculus VR is selling Oculus Rift, a ski-goggles-like virtual reality headset used by people to play games. The company attracted strong interest among developers and more than 75,000 ordered its Oculus Rift development kits.

Getting ready for the platforms of tomorrow

At the time, Mark Zuckerberg, chief executive officer of Facebook Inc (NASDAQ:FB) said, “Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow. Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate.”

The social network giant is planning to expand the existing advantage of Oculus in gaming to other areas such as communications, entertainment, education, media, etc.

During a previous conference call Zuckerberg said, “We’re making the long-term bet that immersive, virtual and augmented reality will become a part of people’s daily lives.”  He also said the Facebook Inc (NASDAQ:FB) wants to make Oculus products “ubiquitous” and bring it to the market as soon as possible.

Facebook’s WhatsApp acquisition

Earlier this month, Facebook Inc (NASDAQ:FB) also received the approval of the FTC to acquire WhatsApp, the instant messaging service for smartphones for $19 billion, however the agency warned both companies regarding the use of data collection policies.

FTC Bureau of Consumer Protection Director Jessica L. Rich reminded the social network giant and the instant messaging service provider regarding their responsibilities to protect the privacy of users. She emphasized that WhatsApp made several promises about the limited nature of data it collects, maintains, and shares with third parties. Its promises exceed the protections currently provided to the users of Facebook Inc (NASDAQ:FB).

Director Rich pointed out that WhatsApp must continue to fulfill its promises to consumers regardless of the acquisition.

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