The Real Reason On Why Facebook Agreed To Pay A Lot More For Oculus
In the light of Facebook CEO Mark Zuckerberg's testimony during the court hearing last January 17 as part of the lawsuit by Zenimax against Oculus for allegedly stealing software and trade secrets, he has shared some interesting information that surprised many people.
Back in 2014, Facebook announced it has acquired Oculus for approximately $2 billion which included $400 million in cash and 23.1 million shares of Facebook stock. There was also an additional $300 million potential earn-out in cash and stock based on "the achievement of certain milestones."
However, during the testimony of Mr. Zuckerberg last January 12, 2017, new details were unfolded as to how his company purchased the VR tech. In his testimony, Mr. Zuckerberg told the court in hearing that Facebook agreed to pay an extra $700 million in employee retention bonuses for certain "key people" which was clearly not mentioned in the past and caused quite a stir. As to who were these key people, there is no information of the exact names.
So Why Did Facebook Disclosed The Information About The $700 Million Retention Bonus?
According to bankers, lawyers and analysts that Tech Crunch spoke to, the actual prices paid for a company and what the public sees in headlines are rarely the same. The $700 million retention bonus that Mr. Zuckerberg was referring to in the court hearing takes into account the ongoing costs following the closing of the deal. These costs are not typically considered in the purchasing price, because these are paid out eventually over time.
The article then further stated (based on one of the bankers claim) that though it was "shockingly big," the money that was set aside was probably for certain key Oculus employees who chose to continue to work at Facebook and have been separated out from the purchasing of the company which is said to be a "not uncommon" practice. They are often viewed in a different category.
How Mark Zuckerberg Is Planning To Make The World A Better Place
Mark Zuckerberg is known to set yearly goals for himself. This time it is to meet and listen to people in all 50 states. He is also said to be religious now after meeting the Pope and praising Buddhism.
Facebook's Comment Section To Feature GIFs?
Facebook will have new features on its app. Click to know all about it.
Oculus Rift , Google Daydream, Occipital Bridge, HTC Vive: Quick Description & Price
A quick description and retail price tag of these VR/AR headsets. Click to know all about it.
What Future Awaits Uber After CEO's Resignation?
Uber's Travis Kalanick succumbs to pressure from shareholders and gives up his CEO title.
Trump Leaves Paris Climate Deal Amid Warnings From Tesla, Apple, Facebook And Google
Donald Trump has been met with disdain by numerous tech leaders and the whole world, for that matter, after his decision to pull the United States out of the Paris Agreement.
MORE IN ITECHPOST
Car Tracking Technology Evolved with a GPS Camera. Here's How
The number of vehicles on the road has increased significantly. It has led to higher exposure to risks while driving a car. It has also changed the way we look at vehicle security. Owners face multiple challenges when it comes to the protection of their vehicles, as well as their loved ones.
Wellness Technology is a Billion Dollar Industry. Here Comes the Next Wave: Death Positive & Grief Wellness
The World Health Organization estimates that 25% of all people will be affected by mental or neurological disorders at some point in their lives, with roughly 450 million individuals currently struggling with a condition.
Eight Must-Have Tools to Keep Your Car Out of Garage
We all dread taking our car to a garage for repairs. We might just want to avoid the inconvenience of being off the road or maybe the costs associated, which can even lead to knock-on effects on things like our holiday plans.
6 Hacks for Students to Choose a Laptop While on a Budget
The modern world tries to drown us in the sea of choices. One can’t simply buy a laptop - there are hundreds of laptops around and sometimes our budget becomes the only real limitation we can rely on. But how to choose other parameters to get the best laptop possible?