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.
How to Make Music on Facebook with the New Tik-Tok Inspired App Called Collab
Facebook has an upcoming TikTok-inspired app called Collab for music makers! Here's how to use it and create your music.
[Video] WWE's Undertaker Literally Freezes Himself at -240 Degrees as Part of His Preparation
The Undertaker named Mark William Callaway is a feared WWE superstar and in a recent clip released on Facebook, the wrestler shows how he literally freezes himself under -240 degrees to prepare.
MORE IN ITECHPOST
You Might Not Be Allowed To Walk In This Japanese City While Using Your Phone Soon
Walking while using your phone is a dangerous thing to do. A city in Japan is proposing a bill to ban people from doing so.
China's All Set to Find 'Aliens' Using Their New Giant Radio Telescope In September
China has a giant radio telescope, it calls FAST and they intend to use it to find aliens. But can they?
A Face has Been Spotted in the Clouds in Terraria: Who Owns the Face?
A Reddit user was playing Terraria in the middle of the night, when he saw a face in the clouds and was shocked. Redditors were quick to share their theories who they think owns the face.