19 February 2014
Last updated at 19:07 ET
Facebook's previous biggest acquisition was Instagram, which it bought for $1bn in 2012
It is the social networking giant's biggest acquisition to date.
WhatsApp has over 450 million monthly users and is popular with people looking to avoid text messaging charges.
In a statement announcing the deal, 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.
It makes money by charging users a subscription fee, although it offers a free model as well.
Siphoning billions
Facebook to buy messaging app WhatsApp for $19bn
Facebook's previous biggest acquisition was Instagram, which it bought for $1bn in 2012
Facebook has bought messaging app WhatsApp in a deal worth a total of $19bn (£11.4bn) in cash and shares.
WhatsApp has over 450 million monthly users and is popular with people looking to avoid text messaging charges.
In a statement announcing the deal, 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.
It makes money by charging users a subscription fee, although it offers a free model as well.
Siphoning billions
The deal to buy it includes $4bn in cash and approximately $12
billion worth of Facebook shares, plus an additional $3 billion in
stock to WhatsApp's founders and employees at a later date.
On a conference call to discuss the deal, WhatsApp co-founder Jan Koum says he plans to operate the firm "independently and autonomously". 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.
Mr Zuckerberg said the prospect of a deal was first floated just 11 days ago.
The Facebook founder said he believed WhatsApp was on track to have a billion users, but insisted he had no plans to place advertising on WhatsApp's interface, saying he did not think ads were the best way to make money from messaging systems.
Cathy Boyle, a senior analyst at research firm eMarketer, said WhatsApp was valuable to Facebook for several reasons beyond advertising, including its younger user base and its popularity overseas.
"WhatsApp actually has greater penetration in a lot of international markets than Facebook," Ms Boyle told the BBC.
She added that it was notable that Facebook's chief financial officer David Ebersman referred to the telecommunications industry when discussing the firm's purchase.
"WhatsApp is trying to siphon the billions that the telecom industry would make from [traditional SMS text messaging]" she said.
Shares in Facebook dropped 5% in after hours trading before recovering slightly.
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.
On a conference call to discuss the deal, WhatsApp co-founder Jan Koum says he plans to operate the firm "independently and autonomously". He will also become a member of Facebook's board of directors.
WhatsApp has over 450 million monthly active users
Mr Zuckerberg said the prospect of a deal was first floated just 11 days ago.
The Facebook founder said he believed WhatsApp was on track to have a billion users, but insisted he had no plans to place advertising on WhatsApp's interface, saying he did not think ads were the best way to make money from messaging systems.
Cathy Boyle, a senior analyst at research firm eMarketer, said WhatsApp was valuable to Facebook for several reasons beyond advertising, including its younger user base and its popularity overseas.
"WhatsApp actually has greater penetration in a lot of international markets than Facebook," Ms Boyle told the BBC.
She added that it was notable that Facebook's chief financial officer David Ebersman referred to the telecommunications industry when discussing the firm's purchase.
"WhatsApp is trying to siphon the billions that the telecom industry would make from [traditional SMS text messaging]" she said.
Shares in Facebook dropped 5% in after hours trading before recovering slightly.
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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From other news sites
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Guardian.co.uk Facebook snaps up WhatsApp 29 mins ago
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International Business Times UK Facebook Buys WhatsApp for $19 Billion 29 mins ago
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Forbes.com Stunner: Facebook To Buy WhatsApp For $19B In Cash, Stock 38 mins ago
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Telegraph Facebook to buy WhatsApp for $19bn 51 mins ago
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Mail Online UK Facebook buys WhatsApp in $16bn deal to attract teens and boost messaging service 1 hr ago
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