The WhatsApp and Twitter Inc., along with their parent company, said Monday they had agreed to pay $250 million to buy the online messaging service, called WhatsApp.
WhatsApp, based in San Francisco, had been valued at about $20 billion.
The purchase price will allow the companies to build their respective business models, including a strong social and messaging presence.
“WhatsApp and Twitter have a unique and valuable business model that will drive them into a position of strength, while maintaining a stable financial position,” WhatsApp CEO Jan Koum said in a statement.
The deal is expected to close by the end of the year.
The companies were formed in 2012 by a merger of the two internet companies.
The founders have said they want to create an open platform that allows people to share and exchange information without fear of interference.
The company had more than 50 million users before it was acquired by Facebook last year.
WhatsApp has about 50 million daily active users, according to data from comScore.
Twitter had more 20 million daily users in December.
The price of the WhatsApp transaction was not disclosed.