ByteDance buys VR headset maker Pico

Chinese tech giant ByteDance, the owner of popular short video-sharing app TikTok, confirmed on Tuesday it acquired Pico, a Chinese virtual reality headset maker.

"Pico's comprehensive suite of software and hardware technologies, as well as the talent and deep expertise of the team, will support both our entry to the VR space and long-term investment in this emerging field. We are optimistic about the future of VR and its alignment with our mission," a ByteDance spokesperson said in a statement.

However, the Beijing-headquartered company did not disclose the size of the deal. Pico also said in a letter to staff that it will be merged into ByteDance's VR-related business and will invest more in product development and developer ecology.

Founded in 2015, Pico is now the third-largest virtual reality headset maker globally as of the first quarter of 2021, followed by Facebook's Oculus and Chinese company DPVR, according to market consultancy IDC.