Lori Smith Quoted on Facebook's Acquisition of Oculus
Lori Smith, Co-Chair of the Corporate and Securities Group, was interviewed by techcrunch.com about Facebook CEO Mark Zuckerberg's testimony this week in a Dallas court regarding the company's acquisition of Oculus VR. The lawsuit claims that Oculus, which was acquired for roughly $2 billion, was based on stolen technology. Zuckerberg defended Oculus and in the process revealed a number of new details about the negotiations involved in purchasing the company, among them that Facebook agreed to pay $700 million in employee retention bonuses for “key people.”
The $700 million that Zuckerberg referenced takes into account the ongoing costs following the close of the deal. Those costs — in the form of performance incentives — aren’t typically considered in the purchase price as they’re paid out over time, explained Smith. “I don’t know the terms of the employment agreements” in this case, Smith said. But such employee incentives are “not typically considered [in the] purchase price, as [they are] paid over time for services to be provided to the buyer by those employees.”
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