Google Inc (NASDAQ:GOOGL) is following Facebook Inc (NASDAQ:FB) and Sony Corp (NYSE:SNE) into the virtual reality sector. Facebook acquired the Oculus rift VR company for $2 billion and Sony has started venturing into the technology by developing VR headsets for PS4 games. Google led group of investors decide to invest more than half a million dollars in a virtual reality startup, MagicLeap Inc. Lisa Allen reported about the story in ‘The street’.
Allen mentioned that the virtual reality technology has attracted many investments in 2014 and the latest inclusion is investment of $542 million by a Google Inc (NASDAQ:GOOGL) lead group on investors on Magic Leap Inc, a VR company.
“[…] A mysterious Florida developer called Magic Leap just scored a $542 million investment from an investor group led by Google. Other investors who got on board include Legendary Entertainment, which is famous for the Dark Knight movie, Qualcomm’s venture capital arm and Venture Capital firms, Andressen Horowitz and Kleiner Perkins,” Allen reported.
She pointed out that Magic Leap is enigmatic about its product and they wanted to use the investment to revolutionize the way people learn, share and play. She added that the biggest clue about its product is on the company website, where a virtual small elephant is pictures as dancing inside the palms.
Magic Leap claims the product as proprietary human-computing interface technology and names the technology as ‘Cinematic reality’. Magic Leap was founded by Tech Entrepreneur, Rony Abovitz. ‘The Deal’ Senior Writer, Chris Nolter feels that investment in Magic Leap shows the electic approach of Google Inc (NASDAQ:GOOGL) in M&A. Other two recent acquisitions of Google Inc (NASDAQ:GOOGL) include thermostat developer NEST Labs and the satellite company Skybox Imaging, which is completely unrelated to the virtual reality technology.
The investment in virtual reality technology by Google Inc (NASDAQ:GOOGL) is mostly a reaction to Facebook and Sony’s initiatives in that sector.
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