Re/Code: Google To Lead $500 Mln Investment In Magic Leap

(RTTNews) - Internet search giant Google Inc. (GOOG, GOOGL), along with other investors, is planning to make an investment of about $500 million in hardware and software developer Magic Leap, technology website Re/Code reported Monday, citing sources.

According to Re/Code, Google is leading the consortium for a $500 million funding round for Magic Leap, with venture capital firm Andreessen Horowitz likely to be one of the other investors in the consortium. Magic Leap is a developer of human computing interfaces and software.

Florida-based Magic Leap, led by Chief Executive Officer and Founder Rony Abovitz, has said it can deliver a more realistic 3D experience that the kind offered by current technologies, including the 3-D headset Oculus Rift that currently has orders for over 75 thousand development kits.

Oculus Rift is being developed by Oculus VR, a virtual reality technology company. Facebook Inc. (FB) said in late March that it has agreed to acquire Oculus VR for about $2 billion as well as a $300 million earn-out in cash and stock based on certain milestones.

In February 2014, Magic Leap said it has raised more than $50 million in its series seed and A rounds. The company added that it will use the funds to advance the product development and commercialization of its proprietary human computing interface technology, known as 'Cinematic Reality'.

Prior to starting Magic Leap, Abovitz was the co-founder and head of development and technology for MAKO Surgical (MAKO), a provider of human-interactive robotics for orthopedic surgery. MAKO Surgical was acquired by Stryker Corp. (SYK) for $1.65 billion in December 2013.

GOOG closed Monday's regular trading session at $533.21, down $11.28 or 2.07 percent on a volume of 2.58 million shares. In after-hours, the stock further declined $4.27 or 0.80 percent to $528.94.