Microsoft Corp. has acquired virtual reality social platform startup AltspaceVR Inc., the companies announced today

The price of the deal was not disclosed, but it’s likely to have come at a discount on the $15.7 million AltspaceVR had previously raised, given the company had ceased operations in early August thanks to financial difficulties.

Founded in 2013, AltspaceVR brings two-dimensional web content into shared virtual spaces, an extension of the web that aims to create a fully holographic experience. Similar to a collaborative workspace but in virtual reality, the company allows users to watch streaming video, play games and work together entirely within a VR environment, sort of Second Life-meets-virtual reality but with far easier tools.

“Microsoft is excited to incorporate communications technology into our mixed reality ecosystem,” AltspaceVR wrote in a blog post. “AltspaceVR takes personal connections, combines them with real-time experiences, and leverages immersive presence to share experiences. Situations of people, places, and things have deeper meaning and in turn, are more memorable. We’re excited to see how far this technology can go.”

Although it initially closed its doors at the beginning of August, AltspaceVR reopened Aug. 15, saying that they “we’re now deep in discussions with others who are passionate about AltspaceVR who want to guarantee that our virtual oasis stays open.” Whether it was talking to Microsoft exclusively or others as well isn’t clear, but notably, it ended up delivering on its vision: AltspaceVR will continue operating as a standalone service under Microsoft ownership.

“AltspaceVR will continue to work on PC and Mac in 2D mode, HTC Vive, Oculus Rift, Daydream by Google, and Samsung Gear VR,” the company added.

Investors in the AltspaceVR prior to acquisition included Tencent, Dolby Family Ventures, Raine Ventures Lux Capital, Western Technology Investments, Maven Ventures, Promus Ventures, Streamlined Ventures, Rothenberg Ventures and Comcast Ventures.

Photo: evrydayvr/Flickr