Episode 35: Oculus
Acquired
Ben Gilbert and David Rosenthal
4.7 • 5.2K Ratings
🗓️ 11 April 2017
⏱️ 82 minutes
🔗️ Recording | iTunes | RSS
🧾️ Download transcript
Summary
Ben & David transcend the barriers of “real” reality, and dive into Facebook and Mark Zuckerberg’s geek-eutpoia vision of the future of gaming, social, and maybe even the entire internet: strapping goofy-looking goggles to your face. Is VR for real this time or are we living through another Virtual Boy moment? Tune in to find out!Â
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Topics covered include:Â
- Oculus’s origins in 2010 as a twinkle in the eye of the then-17 year old VR wunderkind, Palmer Luckey, who started by prototyping VR headsets in his parents’ garage in Southern CaliforniaÂ
- Palmer’s time interning at  USC's Institute for Creative Technologies, and chronicling of his own VR efforts in the Meant to be Seen 3D internet forums
- Legendary game developer John Carmack’s own interest in virtual reality, his intersection with Palmer on the MTBS3D forums, and how he acquired and popularized one of Palmer's first early prototypes of the Oculus Rift (which was  literally held together with duct tape!) by demonstrating it onstage at E3 2012Â
- How former Scaleform cofounders Brendan Iribe and Michael Antonov teamed up with Palmer after E3 to create the company Oculus VR
- The newly-formed Oculus’s wildly successful August 2012 Kickstarter campaign, including video endorsements from both Carmack and Valve founder Gabe Newell
- Oculus’s subsequent venture capital fundraisings, and catching the attention of Facebook and Mark ZuckerbergÂ
- Facebook’s acquisition of the company in March 2014 for $2.3B
- The Zenimax lawsuit filed against Oculus and Facebook following the acquisitionÂ
- Valve (home of the most incredible company handbook of all-time) and Gabe Newell’s subsequent pivot from supporting Oculus to launching their own competing VR efforts with the ViveÂ
- Team changes at Oculus post-acquisitionÂ
 Followups:Â
- SNAP: Â still a public company
 Hot Takes:Â
- Intel’s $15B acquisition of Mobileye (with reference to  Ben Thompson’s analysis of the deal and Smiling Curves)
 The Carve Out:Â
- Ben: Â Kara Swisher interviews the Pod Save America team at SXSW
- David: Adam Gopnik asks Are Liberals on the Wrong Side of History?
Transcript
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| 0:00.0 | Hey acquired listeners, Ben here. You'll notice for the first eight minutes or so of the episode, |
| 0:04.8 | my audio quality isn't the greatest, but bear with us, it'll be crystal clear for most of the episode. |
| 0:10.4 | Thanks. Is ocular and occluded from the same route? |
| 0:14.0 | I don't know. |
| 0:17.0 | I don't know. Anyway. |
| 0:18.0 | That feels right. |
| 0:20.0 | Because I think that's her logo, right? |
| 0:21.0 | It's an eye, yeah all right I can I concede Welcome back to episode 35 of acquired, the podcast about technology acquisitions and IPOs. |
| 0:43.4 | I'm Ben Gilbert. |
| 0:44.6 | I'm David Rosenthal. |
| 0:45.6 | And we are your hosts. |
| 0:48.1 | Today's episode we are covering the Facebook acquisition of Oculus. |
| 0:52.4 | A much requested episode by a lot of our listeners |
| 0:55.7 | in the Slack and one we've gotten a lot of email about. |
| 0:59.4 | So we've now got enough distance from the acquisition |
| 1:02.0 | that there's a lot more to come, but we feel we feel comfortable covering it. |
| 1:05.7 | No doubt about that and we thought now would be a good time to do it given some of the themes we talked about on the Snap IPO episode that this would be a good counterpoint, a sort of different approach to a camera company. |
| 1:20.0 | Indeed. |
| 1:22.0 | So before we dive in, we have some incredible listeners that leave some great iTunes reviews. |
| 1:27.0 | And sometimes they're even a little host deprecating, but we love them all the same as long as they are five stars and they help us grow the show. |
| 1:34.8 | So as we mentioned a couple episodes ago, if you leave one that we think is worth reading on the air, |
| 1:39.7 | we're going to go ahead and do just that. |
... |
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