Facebook Buys Virtual Reality Firm Oculus VR for $2 Billion

Facebook Inc has reached a deal to buy Oculus VR Inc, a two-year old company that makes virtual-reality glasses used in gaming, for $2 billion as it seeks to gain a slice of the rapidly-growing wearable devices market.

The purchase, which follows the massive $19 billion buyout of WhatsApp messaging service, is part of Facebook’s move to anticipate the next trend in the fast-evolving tech industry. It is also coming at a time when consumers are shifting to smartphones over personal computers.

Critics have lambasted the company for recognizing the shift to handheld devices, and it is only of late that the company’s revenue has started picking up.

Most technology pundits are of opinion that wearable devices are the next huge platform shift. Google Inc has been conducting tests on Google Glass for many years. Last week, it launched a campaign to craft computerized wristwatches.

Facebook’s founder and CEO Mark Zuckerberg said that virtual-reality technology will be the next communications and social platform.

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

Oculus VR, which was founded by Palmer Luckey, raised funds from a Kickstarter-funded program to finance its initial operations. However, the company quickly gained prominence after introducing its “Oculus Rift” virtual-reality glasses which was showcased in gaming and tech conventions in the United States.  

Oculus VR’s popularity quickly attracted the attention of venture investors such as Formation 8, Spark Capital and Matrix Partners.