Full title: Microsoft has purchased $100-150 million worth of Agumented Reality patents
Earlier this week, Facebook announced that it had acquired Oculus VR for $2 billion, and it turns out that this isn’t the only recent piece of M&A in the category of head-mounted wearable computing. Microsoft, we have discovered, has paid up to $150 million to buy IP assets related to augmented reality, head-borne computers, and related items from the Osterhout Design Group, a low-profile company that develops wearable computing devices and other gadgets, these days primarily for the military and other government organizations.
As you might remember, we first broke the news that Microsoft was looking at acquiring ODG, or part of its assets, in September 2013, at a price tag of up to $200 million, depending on what went into the deal.
Here’s what ended up happening: Microsoft was indeed in discussions with the company, and as we reported, the conversations were focused around whether Microsoft would try to buy the whole company outright or just intellectual property. Ultimately, it worked out to be the latter, for a price that TechCrunch understands is between $100 million and $150 million.
After a source told us that the deal was done, we dug a bit further and managed also to get a confirmation from Ralph Osterhout himself, the low-profile inventor, founder and head of ODG.
"Just to be clear, this was purchase of only 6 approved and 75 in-progress patents augmented reality glasses."
Seems MS are going heavy on the whole AR thing rather than VR. Interdasting