Facebook buys virtual reality company Oculus for $2 billion

BY News Desk  March 25, 2014 at 6:45 PM EST

Facebook has agreed to buy virtual reality company Oculus for $2 billion.

Facebook Inc. said Tuesday that the deal includes $400 million in cash and 23.1 million shares worth about $1.6 billion.

In February the company announced it would pay $19 billion for WhatsApp, a messaging application and service.

In 2013, PBS NewsHour economics correspondent Paul Solman gave the virtual reality equipment a test drive. Watch that report below: