Software provider Microsoft has acquired AltspaceVR, a US-based virtual reality platform backed by mass media conglomerate Comcast, internet group Tencent and internet technology producer Alphabet, two months after it announced its closure.
Founded in 2013, AltspaceVR has developed a VR-based social networking platform that allows users to join 3D chat rooms to talk, play games, watch videos and attend events using avatars. The platform is used by 35,000 users each month.
The company revealed in a blog post in August 2017 that it would shut down, following its inability to close a funding round that would have enabled it to maintain operations.
However, AltspaceVR announced several weeks later that it would continue with support from a third party, which has now been revealed as Microsoft. Terms of the acquisition deal were not disclosed.
AltspaceVR said in a blog post disclosing the deal that it will remain separate from Microsoft and will continue to focus on growing its users and developing its platform.
The company raised $5.2m in a 2014 seed round featuring Tencent, Alphabet subsidiary GV, Raine Ventures, Dolby Family Ventures, Lux Capital, Western Technology Investments (WTI), Promus Ventures, Streamlined Ventures, Rothenberg Ventures, Formation 8, Foundation Capital, SV Angel and Haystack Fund.
Tencent, Dolby Family Ventures, Raine Ventures, Lux Capital, WTI, Promus Ventures, Streamlined Ventures and Rothenberg Ventures joined Comcast’s corporate venturing unit, Comcast Ventures, and Maven Ventures for the company’s $10.3m series A round in mid-2015.