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Facebook Actually Bought Oculus for $3 Billion (Not $2 Billion)

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Mark Zuckerberg gave testimony during a lawsuit with ZeniMax about the real cost of Oculus.

The Facebook CEO knows exactly how much his company paid for Oculus, clarifying the higher purchase price at a Texas courthouse.

In Dallas federal court on Tuesday, Zuckerberg took the stand to testify in the intellectual property lawsuit between Facebook-owned Oculus and ZeniMax Media, a company that previously employed a number of Oculus employees, including co-founder Palmer Luckey. ZeniMax alleges that Oculus created their Rift VR headset from misappropriated trade secrets.

During Zuckerberg’s testimony, a ZeniMax attorney directly asked about the price Facebook paid for Oculus. Zuckerberg acknowledged the total consideration was about 50 percent higher than the “approximately $2 billion” announced in a March 2014 release.

Facebook actually paid $3 billion, not $2 billion for Oculus.

So what did this extra billion go to? According to New York Times reporter Mike Issac, Zuckerberg testified that on top of the $2 billion purchase price, $700 million was paid to keep key employees along with a $300 million earn-out based on key milestones.

Oculus Founder Palmer LuckeyHello $3 billion.

So now the question becomes, if Forbes estimated Oculus founder Palmer Luckey’s net worth to be $700 million in 2015 based on the original purchase price figure, in reality, is Luckey a legit billionaire now.

About the Scout

Jonathan Nafarrete

Jonathan Nafarrete is the co-founder and editor-in-chief of VRScout.

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