27 Mar 2014

Virtual reality company bought by Facebook

12:17 pm on 27 March 2014

Facebook is buying a Californian virtual reality company for about $US2 billion. Oculus Rift makes a virtual reality headset that is yet to hit the market.

Facebook boss Mark Zuckerberg said Oculus' technology could change the way people work, play and communicate.

Facebook spent $US19 billion buying the What's App messenging service two weeks ago.

Shares in Facebook slumped 5 percent after the Oculus purchase.