Tech: Facebook inks $2B deal for VR firm
Social media is about to become even more immersive, said Nick Wingfield and Vindu Goel in The New York Times. Facebook announced this week that it will pay $2 billion to buy virtual reality headset-maker Oculus VR. The deal is seen as a “bet that a technology commonly associated with science fiction can help eventually turn social networking into an immersive, 3-D experience.” The acquisition was something of a surprise because the Irvine, Calif., startup has yet to sell any products to the general public and is “working on what some view as a niche technology aimed at hard-core video game players.”
Facebook has big plans for Oculus, said Reed Albergotti and Ian Sherr in The Wall Street Journal. CEO Mark Zuckerberg said the company plans to use Oculus as a platform for multiple experiences. “Imagine enjoying a courtside seat at a game, studying in a classroom of students and teachers all over the world, or consulting with a doctor face-to-face—just by putting on goggles in your home.” But that optimism may not pan out. Consumers to date have “largely shunned fancy headgear” aimed at video games and 3-D TVs, and analysts say Oculus is still years away from delivering “really compelling virtual reality experiences.”
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They knew, said Joseph Ax in Reuters.com. A federal jury convicted five former aides to Bernard Madoff on charges that they “helped their boss conceal his multibillion-dollar Ponzi scheme for years.” The defendants—the back-office director, two portfolio managers, and two computer programmers—were convicted on counts of securities fraud and conspiracy to defraud investors. The former employees maintained that they were “unwitting accomplices” duped by Madoff’s potent mix of “charm and deception.”
Banks: Investment exec leaves JPMorgan
Another senior executive is leaving JPMorgan Chase, said Michael J. de la Merced in NYTimes.com. Michael Cavanaugh, who co-heads the firm’s investment bank, is jumping ship to join the Carlyle Group in a newly created role of co-president. Cavanaugh’s departure from JPMorgan “is one of the most surprising” recent exits, since “he had long served as a top lieutenant” to the bank’s chief executive, Jamie Dimon, “and his ascent through the ranks had marked him as a potential successor.”
Media: Disney to buy Maker Studios
The Walt Disney Co. is snapping up one of YouTube’s largest content providers, said Ryan Faughnder in the Los Angeles Times. Disney announced this week that it will pay $500 million for Maker Studios, a Culver City–based digital media company with 380 million subscribers and 5.5 billion views per month over roughly 55,000 YouTube channels. Founded in 2009, the firm is best known for its short-form videos “aimed at Millennial viewers, who increasingly go online for video entertainment.”
Taxes: IRS deems Bitcoins ‘property’
The taxman has spoken, said Richard Rubin and Carter Dougherty in Bloomberg.com. In “its first substantive ruling on the issue,” the Internal Revenue Service said this week that it will treat Bitcoins “as property” for tax purposes, applying the same rules used to “govern stocks and barter transactions.” The distinction may limit Bitcoin’s utility as a digital currency, but owners may benefit as profits from transactions will be taxed as capital gains, with a cap of 20 percent, and not as ordinary income, which is subject to a top tax rate of 39.6 percent.
