Facebook Buys Virtual Reality Company Oculus For $2 Billion

FILE - In this Oct. 10, 2011 file photo, a magnifying glass is posed over a monitor displaying a Facebook page in Munich. Regulators are examining whether Morgan Stanley, the investment bank that shepherded Facebook ... FILE - In this Oct. 10, 2011 file photo, a magnifying glass is posed over a monitor displaying a Facebook page in Munich. Regulators are examining whether Morgan Stanley, the investment bank that shepherded Facebook through its highly publicized stock offering last week, selectively informed clients of an analyst's negative report about the company before the stock started trading. The bank said on Tuesday May 22, 2012 said that its procedures complied with regulations. (AP Photo/dapd, Joerg Koch) MORE LESS
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MENLO PARK, Calif. (AP) — Facebook says it has agreed to buy Oculus, a virtual reality technology company, for $2 billion.

Facebook Inc. 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.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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