Facebook buys messaging app in a deal worth $19bn.
The purchase is Facebook's biggest ever acquisition with WhatsApp receiving $12bn in Facebook shares, $4bn in cash and an additional $3bn in restricted shares that will be paid out to executives at a later date.
The social media leader stated that WhatsApp - a cross-platform messaging app for mobile devices - will operate as an autonomous unit. The deal follows Facebook's failed attempt to acquire SnapChat for $3bn and has apparently come at a significant premium, after search giant Google reportedly offered $1bn for the company in 2013.
A younger audience
Facebook has dramatically upped its mobile strategy with this latest acquisition, targeting a younger audience who, according to sector analysts, prefer a more 'ephemeral' approach to social media.
Mark Zuckerberg, Facebook founder and CEO stated: "WhatsApp is on a path to connect one billion people. The services that reach that milestone are all incredibly valuable.”