By late morning, shares had taken off 2.1% to $63.56.
The social network said it had reached an agreement to acquire the company for around $ 2 billion, which includes $400 million in cash and 23.1 million shares of Facebook stock. Oculus will also be eligible for up to $300 million in performance milestone benefits.
"Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow," said CEO Mark Zuckerberg in a statement. "Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."
The transaction is expected to close in the second quarter of 2014.
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TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."