Tags: Facebook | Billion | Device | Oculus

Facebook to Pay $2 Billion for Device Maker Oculus

Tuesday, 25 Mar 2014 05:56 PM

Facebook Inc. said it will buy virtual-technology company Oculus VR Inc. for about $2 billion, in its first push into the hardware-technology industry.

The deal includes $400 million in cash and 23.1 million Facebook shares, as well as an additional $300 million if the acquisition achieves certain milestones, the Menlo Park, California-based company said in a statement Tuesday.

Facebook has ramped up its dealmaking this year as it works to beef up its mobile business. The social network acquired mobile photo-sharing application Instagram in 2012 for about $700 million. The company agreed to buy mobile messaging app WhatsApp Inc., which has 450 million users worldwide, for about $19 billion last month. Oculus, based in Irvine, California, makes a ski-goggles-like device.

“Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow,” said Facebook Chief Executive Officer Mark Zuckerberg in the statement. “Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate”

Facebook shares rose 1.2 percent to $64.89 at the close in New York before the acquisition was announced. They have gained 19 percent so far this year.

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Facebook Inc. said it will buy virtual-technology company Oculus VR Inc. for about $2 billion, in its first push into the hardware-technology industry.
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2014-56-25
Tuesday, 25 Mar 2014 05:56 PM
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