That breaks down to $400 million in cash followed by 23.1 million shares of Facebook common stock, which were valued at $1.6 billion based on the average closing price of the 20 trading days preceding March 21, 2014 at $69.35 per share. There is also another $300 million singled out as earn-out in cash and stock based undefined "milestones" if achieved.
The multi-billion deal is just one in what appears to be evolving into a string of many for the Menlo Park, Calif.-headquartered company.
Just over a month ago, Facebook picked up the popular messaging service WhatsApp for $16 billion in a user land-grab to build upon a base that already consists of more than a billion members worldwide.
The VR headset is currently being prepped for developers, but not quite ready for consumers just yet. The merger announcement revealed that Oculus has already received more than 75,000 orders for development kits.
Facebook can certainly help provide a bridge to mainstream consumers that are likely not familiar with augmented and virtual reality technologies that have been buzzed about over the last few months.
Facebook CEO Mark Zuckerberg affirmed as much in Tuesday's announcement:
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.
Facebook also argued that "virtual reality technology is a strong candidate to emerge as the next social and communications platform," making Oculus a prime (albeit unexpected) piece in the puzzle that is Facebook's social conglomerate strategy.