Not to be left out of the wearable computing market, Facebook on Tuesday said it has agreed to acquire Oculus VR, maker of the Oculus Rift virtual reality headset, for $2 billion -- $400 million in cash and $1.6 billion in Facebook stock.
That's far less than the $19 billion Facebook spent to acquire WhatsApp last month, but it's nonetheless the second-largest acquisition the company has made to date. Oculus VR began as a Kickstarter campaign that sought $250,000 and collected almost 10 times that amount by the time the campaign concluded in October 2012.
In a public post, Facebook CEO Mark Zuckerberg described the deal as a way for Facebook to begin focusing on the platforms that will come after mobile. Oculus's technology, he said, "opens up the possibility of completely new kinds of experiences."
Oculus gives Facebook a foothold in the wearables market.
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— Thomas Claburn is editor-at-large for Information Week.