Facebook buys virtual reality company Oculus for $2B

Menlo Park, Calif. -- Facebook (FB) says it has agreed to buy Oculus, a virtual reality technology company, for $2 billion.

Facebook said Tuesday that the deal includes $400 million in cash and 23.1 million shares worth about $1.6 billion. Oculus employees are also eligible for an additional $300 million if the company achieves certain targets.

Oculus makes the Oculus Rift, a virtual reality headset that's received a lot of attention from video game developers, though it's yet to be released. Facebook says that while applications for virtual reality technology beyond gaming are "nascent," it plans to extend it to other uses. These include communications, media, entertainment and education.

The purchase follows Facebook's $19 billion deal to purchase messaging startup WhatsApp last month.

Comments

CBSN Live

pop-out
Live Video

Market Data

Watch CBSN Live

Watch CBS News anytime, anywhere with the new 24/7 digital news network. Stream CBSN live or on demand for FREE on your TV, computer, tablet, or smartphone.

Market News

Stock Watchlist