How ByteDance’s Billion‑Dollar Pico Deal Challenges Facebook’s Metaverse Push

On August 31, ByteDance confirmed the acquisition of Pico, the largest domestic VR hardware company, for a price reportedly in the tens of billions of yuan, echoing Facebook’s 2014 $30 billion purchase of Oculus.

Facebook’s Oculus deal, largely paid in stock that later multiplied in value, was driven by a belief that VR/AR would become the next computing platform once active users reached around ten million.

ByteDance’s earlier modest investment in metaverse startup Code Kuankun now escalates to a massive purchase, positioning the company to compete directly with Facebook’s VR ambitions.

Pico, similar to Oculus, develops both VR hardware and content, and its major shareholder, Goer Acoustics, also manufactures hardware for Oculus Quest, creating overlapping supply chains.

The rivalry extends beyond hardware: TikTok’s rapid growth has eroded Facebook’s advertising revenue, prompting Facebook to launch copycat short‑video apps like Lasso and Reels, which failed to match TikTok’s scale.

Facebook’s founder Mark Zuckerberg has repeatedly emphasized a three‑pillar strategy—global connectivity, AI, and VR/AR—aiming to transform the company into a metaverse leader within five years.

ByteDance seeks to leverage its global short‑video and collaboration tools to build a metaverse ecosystem, investing in projects like Code Kuankun’s youth‑focused UGC platform Reworld, which resembles Roblox.

Beyond VR hardware, both companies are expanding into gaming; Facebook has acquired several VR game studios, while ByteDance has bought multiple game developers and is experimenting with VR content such as the virtual idol group A‑Soul.

Analysts view the Pico acquisition as ByteDance’s attempt to accelerate its metaverse entry, but note that sustained investment in software ecosystems and VR wearables will be essential to remain competitive.