The owner of the social media platform diversifies its business with the purchase of Pico VR.
Last week rumors began circulating regarding the potential acquisition of Pico VR by ByteDance Ltd., the parent company of social media platform TikTok. Today, ByteDance confirmed its purchase of the ever-growing Chinese VR headset manufacturer.
According to a report by the Chinese VR publication VR Tuoluo (first spotted by CNBC), ByteDance has released an official statement expressing their excitement regarding this major acquisition, saying Pico’s “comprehensive suite of software and hardware technologies, as well as the talent and deep expertise of the team, will support both our entry to the VR space and long-term investment in this emerging field.”
So, why is this acquisition such a big deal exactly? ByteDance’s purchase of Pico marks the companies first foray into VR, potentially putting it in direct competition with Facebook’s Oculus platform. According to the IDC, Pico VR was the third-largest headset manufacturer in the first quarter of 2021.
Most recently, the company released the Pico Neo 3, its latest standalone 6DoF device. Whereas other headset manufacturers specialize in providing tethered hardware, Pico’s interest in standalone VR could be a potential threat to Facebook’s Oculus Quest down the road.
There’s no word yet on an official purchase price, though VR Tuoluo is reporting a cost of $775 million; not the biggest acquisition of a VR company we’ve seen, but substantial nonetheless.
“We are optimistic about the future of VR and its alignment with our mission,” said a ByteDance spokesperson.
For more information check out CNBC’s full report here.
Feature Image Credit: TikTok
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