Facebook to buy Oculus VR for $2 billion

Virtual reality goes social

Facebook to buy Oculus VR for $2 billion

Days after Sony made major waves in the virtual reality space with the unveiling of Project Morpheus at GDC, its closet competitor – Oculus VR – looks set to be acquired by Facebook.

The social network has released a statement claiming it has "reached a definitive agreement" to buy the firm for a total of approximately $2 billion.

The deal includes $400 million in cash and 23.1 million shares of Facebook common stack, currently valued at $1.6 billion.

Mobile mover

"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 looked like it had met its match in the form of Sony's Project Morpheus for PS4, which impressed the press at generated more than healthy queues on the GDC expo floor.

The firm will undoubtedly be boosted by Facebook's move, though it's unclear just how the social giant will use the technology. Speculation already suggests Facebook maybe interested in using Oculus primarily as a vehicle for ads.

Indeed, in the statement announcing the firm's planned acquisition, Facebook makes no comment on any release plans for the forthcoming Oculus Rift headset.

"Facebook plans to extend Oculus' existing advantage in gaming to new verticals, including communications, media and entertainment, education and other areas," detailed Facebook in a statement.

Virtual future

"We are excited to work with Mark and the Facebook team to deliver the very best virtual reality platform in the world," added Oculus VR co-founder and CEO Brendan Iribe.

"We believe virtual reality will be heavily defined by social experiences that connect people in magical, new ways. It is a transformative and disruptive technology, that enables the world to experience the impossible, and it's only just the beginning."

The agreement also provides for an additional $300 million earn out in cash and stock, based on Oculus achieving set milestones.

With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.