The deal is comprised of $400 million in cash and 23.1 million shares of Facebook stock.
Facebook announced its surprise purchase via a blog post. CEO Mark Zuckerberg has also revealed Facebook’s reasons for the deal.
“Oculus’s mission is to enable you to experience the impossible. Their technology opens up the possibility of completely new kinds of experiences,” Zuckerberg says.
“Immersive gaming will be the first, and Oculus already has big plans here that won’t be changing and we hope to accelerate.”
Zuckerberg says that Facebook will “focus on helping Oculus build out their product and develop partnerships to support more games.” But he makes clear that after Oculus sees through its gaming ambitions, Facebook will expand the product into new territory.