Facebook acquires Oculus VR for $2bn USD

Facebook has agreed a deal to acquire Oculus VR for around $2billion USD.

The social network will pay $400million USD in cash up front and provide 23.1million shares of common stock - which are valued at approximately $1.6billion USD.

Facebook is hoping to use Oculus to stretch its "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 CEO and founder Mark Zuckerberg.

"Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."

The team behind Oculus is pleased with Facebook's plans to use the VR technology for more than just gaming.

"A few months ago, Mark, Chris and Cory from the Facebook team came down to visit our office, see the latest demos and discuss how we could work together to bring our visions to millions of people," said Oculus in a joint statement.

"As we talked more, we discovered the two teams shared an even deeper vision of creating a new platform for interaction that allows billions of people to connect in a way never before possible.

"This partnership ensures that the Oculus platform is coming, and that it's going to change gaming forever."

The deal is expected to be finalised during the second quarter of 2014, while Oculus will finish development of the Oculus Rift under Facebook's ownership.