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Facebook shares drop 7% on Oculus buyout

Social network giant plans to acquire the Rift maker for $2 billion

Facebook's share price dropped 6.9 per cent on Wednesday, the first full day following the announcement that the company is to acquire Oculus VR.

The company's share price fell $4.51 to close at $60.38, after the firm said on Tuesday night that it has agreed to buy the Oculus Rift maker in a deal that could be worth in excess of $2 billion.

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Oculus will be paid $400 million in cash and receive $1.6 billion worth of Facebook shares, with a promise of up to an additional $300 million in cash and stock depending on the achievement of certain undisclosed milsetones.

The announcement has divided gamers, with a number of Rift backers taking to the device's original Kickstarter page to voice their displeasure and in some cases request a refund.

Mojang's Marcus 'Notch' Persson also announced his decision to stop work on a Rift-enabled version of Minecraft, stating "Facebook creeps me out".

However, respected developer and id co-founder John Carmack, who joined Oculus VR as chief technology officer in August 2013, claimed he was in favour of the deal, saying Facebook will bring much needed 'scale' to the VR business.

Facebook's acquisition of Whatsapp last month also resulted in an early share price drop of 4.8 per cent. This was recovered with a four per cent rise the following week, however, after CEO Mark Zuckerberg explained the reasons for the deal during a keynote speech at the Mobile World Congress.

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