(Bloomberg) -- ByteDance Ltd. is in discussions to acquire Pico, a Chinese maker of virtual reality headsets, as it seeks new drivers for growth, according to a person familiar with the matter.
Founded in 2015, Beijing-based Pico employs more than 300 employees and sells its VR headsets to businesses globally as well as consumers in Asia. An investment in the firm would mark ByteDance founder Zhang Yiming's first foray in VR and a potential new source of revenue after hitting the jackpot with TikTok, its Chinese counterpart Douyin and news aggregator Toutiao.
Talks are still ongoing and a final decision hasn't been made, the person said, asking not to be identified. ByteDance and Pico didn't immediately reply to queries about the talks, which were first reported by local trade media.
VR headsets have been gaining popularity as more games and fitness apps adopt the technology. ByteDance will be joining an already crowded field, led by Facebook Inc., which last year introduced an upgraded Oculus Quest headset that was the best-selling VR headset globally. Meanwhile Apple Inc. is expected to release a rival VR device as early as next year.
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