Facebook Buys Virtual Reality Company for $2 Billion

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.