Monday, February 26, 2024
HometechnologyFacebook buying virtual reality firm Oculus for $2 billion

Facebook buying virtual reality firm Oculus for $2 billion

Facebook is getting into the virtual reality game. The social media giant announced a $2 billion deal to buy Oculus VR Inc.

The deal includes $400 million in cash and 23.1 million shares of Facebook common stock. Oculus made waves with its virtual reality headset Oculus Rift. The transaction is expected to close in the second quarter.

"Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow," said Facebook CEO Mark Zuckerberg, in a statement. "Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."

A man checks a mobile device during the 2014 Mobile World Congress in Barcelona, Spain, on Feb. 26, 2014Tech's biggest showcase: Mobile World Congress

Oculus raised more than $2.4 million in a Kickstarter campaign to help fund development of its first immersive gaming product, the Oculus Rift.

Later, in a Facebook post, Zuckerberg referred to the Oculus Rift as a new communication platform that will "unlock new worlds for all of us."

"Imagine enjoying a court side seat at a game, studying in a classroom of students and teachers all over the world or consulting with a doctor face-to-face—just by putting on goggles in your home," he added.

Facebook ended 2013 with $11.45 billion in cash and marketable securities. The company's $19 billion acquisition of WhatsApp includes $4 billion in cash.

The Oculus deal comes about a month after Zuckerberg said the company was done with acquisitions for some time.

During a keynote event at Mobile World Congress last month Zuckerberg said, "After buying a company for $16 billion, you're probably done for awhile," after an audience member asked him if the firm planned to bid on Snapchat again, according to Mashable.

Reuters contributed to this report.

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