Facebook buys Oculus Rift for $2 billion

Facebook has announced that it has reached a "definitive agreement" to acquire Oculus VR, creators of the Oculus Rift virtual reality technology. The deal is said to be worth approximately $2 billion, which includes $400 million in cash and 23.1 million shares of Facebook stock. The agreement also provides for an additional $300 million "earn-out in cash and stock based on achievement of certain milestones."

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

Facebook's exact plans remain a mystery, but in a post on Facebook, Zuckerberg shared plans "to make Oculus a platform for many other experiences."

"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," Zuckerberg envisioned. "This is really a new communication platform. By feeling truly present, you can share unbounded spaces and experiences with the people in your life. Imagine sharing not just moments with your friends online, but entire experiences and adventures."

"These are just some of the potential uses. By working with developers and partners across the industry, together we can build many more. One day, we believe this kind of immersive, augmented reality will become a part of daily life for billions of people."

"Virtual reality was once the dream of science fiction. But the internet was also once a dream, and so were computers and smartphones. The future is coming and we have a chance to build it together. I can't wait to start working with the whole team at Oculus to bring this future to the world, and to unlock new worlds for all of us," Zuckerberg concluded.

The transaction is expected to close in the second quarter of 2014. Oculus will maintain its headquarters in Irvine, California, and will continue development of the Oculus Rift.