On July 21, 2014, Facebook officially acquired Oculus VR, the virtual reality pioneer, for $2 billion. The deal was announced by Mark Zuckerberg in March 2014; the U.S. FCC’s antitrust team approved the deal in April; and it passed the California Department of Corporations fairness hearing in July.
The acquisition includes $400 million in cash and 23.1 million common shares of Facebook, valued at $1.6 billion, as well as an additional $300 million that will be awarded to Oculus if it reaches certain milestones. Oculus VR, founded by Brendan Iribe and Palmer Luckey, will remain an independent operation within Facebook.
Oculus and Facebook issued a statement saying, “We’re looking forward to an exciting future together, building the next computing platform and reimagining the way people communicate.”
Zuckerberg stated that Facebook will focus on helping Oculus build out its product, Oculus Rift and support more games.