Deal was announced four days after "Oculus" world premiered in the Midnight Madness section at Toronto.
The film was directed by Mike Flanagan from a script he wrote with Jeff Howard, based on the short film that Flanagan and Jeff Seidman created in 2005.
Karen Gillan, Brenton Thwaits and Katee Sackhoff star. The film was produced by Mark D. Evans and Trevor Macy via Intrepid Pictures.
Flanagan recently re-teamed with Intrepid Pictures to helm horror film "Somnia" with production starting this fall.
"Oculus" is centered on a cursed 300-year-old mirror with a brother and sister (Thwaits and Gillan) finding the cause of their parents' deaths -- a mirror which has caused destruction in over its 300-year history.
"It's all based on a short film I made on my laptop in 2005 for $1,000," Flanagan recalls. "Next thing I know, I'm directing a real movie."
"Oculus" was shot in Mobile, Ala., last October for 25 days. FilmDistrict acquired U.S. distribution rights at Cannes last year but has backed away from that pact recently due to a proviso calling for a wide release. So the project's U.S. rights were up for sale again through Paradigm.
Flanagan had originally planned to shoot nine 20-minute Oculus movies.
© 2013 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC