Facebook to acquire Oculus VR for $2 billion

Facebook will acquire Oculus VR, developer of the Oculus Rift virtual reality headset, for approximately $2 billion, the social network announced.

The transaction, which is expected to close in the second quarter of 2014, consists of $400 million in cash and 23.1 million shares of Facebook common stock, and an additional $300 million in cash and stock based on the achievement of certain milestones.

Facebook said it plans to extend Oculus’ existing advantage in gaming to new verticals, including communications, media and entertainment, education, and other areas.

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

Oculus VR will maintain its Irvine, California headquarters, and continue developing the Oculus Rift headset.