(Yicai Global) Aug. 30 -- ByteDance Technology has bought virtual reality startup Pico, marking the first foray into the field by the Chinese firm behind TikTok, China Securities Journal reported, citing an email the VR headset maker sent to its employees yesterday.

It did not disclose the value of deal, but media reports have said the acquisition could cost Beijing-based ByteDance CNY5 billion (USD772.5 million). ByteDance has already made long-term investments into the research and development of virtual and augmented reality.

Founded in 2015, Pico mainly develops and sells gaming and audio-visual VR equipment. The Beijing-based firm has shipped a total of 500,000 units of the three products it has brought out so far, much more than Huawei Technologies and Xiaomi. Pico was China’s largest VR gear maker by market share last year, according to IDC.

VR device maker Goertek was Pico’s controlling shareholder and original equipment manufacturer before it was bought by ByteDance. The pair will continue their cooperation, the email said.

Goertek’s stock price [SHE:002241] closed 3.9 percent higher today at CNY51.07 (USD7.90), after earlier surging as much as 9.4 percent.

Editor: Futura Costaglione