Facebook (FB) is buying Oculus VR, developer of a virtual reality headset that has made waves in the gaming community (the Oculus Rift), for $400M in cash, 23.1M shares (current value of $1.6B), and $300M in performance earn-outs. The deal is expected to close in Q2.
Facebook notes Oculus has received 75K+ orders for its development kits, and says it plans to apply the company's technology to verticals beyond gaming, including communications, education, and media.
Mark Zuckerberg: "Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow ... Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."
Sony recently announced a PlayStation 4 VR headset expected to be available next year, and Microsoft is reportedly working on a VR headset for the Xbox One.
CC at 6:15PM ET.