ByteDance, TikTok's parent company seems determined to outdo Facebook wherever it can. ByteDance, which has taken over the title of the most downloaded social media app in the globe with TikTok is now looking to buy Pico, a virtual reality headset manufacturer.
Bloomberg first reported the deal last week. However, ByteDance did not disclose the price tag. Pico has raised $62 million from Chinese venture funds, including a $37million Series B in March. They create hardware and software for their VR devices, much like Oculus. They have a significant presence in China, unlike Oculus. Pico might not be as well-known as HTC or Oculus, but they are a leading VR hardware manufacturer, with a large customer base in China and Western enterprises.
Pico now has a home at ByteDance and two of the largest virtual reality brands in the world are now based within social media companies. Ironically, most of the North American customers I have spoken with seem to have opted for Pico headsets instead of Oculus hardware because of Facebook's data weariness and ads-dependent business models. They fear Oculus will soon become more prevalent.
Although it is obvious that virtual reality has been slow to develop, Facebook has set the pace for technology by investing billions in an ecosystem traditional investors have not shown much interest in in recent years.
It is difficult to tell if this is a sign of VR's resurgence or a sign of a contracting market without knowing the details of the deal (I am asking around). It seems that ByteDance is interested in creating a consumer VR brand. They are trying to emulate Facebook's success and learning from their mistakes and capitalize on their contributions to this ecosystem. ByteDance will need to answer the big question of whether the company focuses only on China's consumer market or whether it also pursues US enterprise clients.
