Facebook has said it will buy messaging app WhatsApp for $19bn (£11.4bn) - the social networking giant's biggest purchase to date.
WhatsApp is popular with people looking to avoid text messaging charges and has been cited as a rival to BlackBerry Messenger.
WhatsApp has over 450 million monthly users.
In a statement, Facebook founder Mark Zuckerberg described WhatsApp's services as "incredibly valuable".
WhatsApp allows users to send messages over internet connections, avoiding text messaging fees. The company claims it is currently registering one million new users a day.
Facebook will pay $4bn in cash and $12bn in stock for the firm. An extra $3bn in restricted stock will be given to WhatsApp's founders and employees.
WhatsApp founder Jan Koum will stay on and operate the firm independently. He will also become a member of Facebook's board of directors.
"We're excited and honoured to partner with Mark and Facebook as we continue to bring our product to more people around the world," Mr Koum said in a statement.
Shares in Facebook dropped 5% in after hours trading on news of the purchase.
Prior to this acquisition, Facebook's biggest buy had been Instagram for $1bn in 2012.
It had also reportedly offered $3bn to acquire photo messaging service Snapchat.
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