Facebook to buy Oculus VR in deal valued up to $2.3B

Facebook announced Tuesday afternoon it had reached a deal to purchase virtual reality tech company Oculus VR in a cash and stock deal valued up to $2.3 billion.

"Oculus's mission is to enable you to experience the impossible," Facebook CEO Mark Zuckerberg wrote in a post on the social network as the news broke. "Their technology opens up the possibility of completely new kinds of experiences."

The deal, which includes $400 million in cash and 23.1 million shares of Facebook common stock, is expected to close in the second quarter this year. There is also an additional $300 million earn-out in cash and stock if specific milestones are achieved.

The use of virtual reality - beyond gaming - is still in its early stages, but Facebook believes it will be the next big break in social communications online, according to the Fox News report.

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