For a price tag of $16 billion, social media giant Facebook is purchasing messaging app WhatsApp, TechCrunch reported citing a regulatory filing.

The purchase will be made in cash and stock, with Facebook shares making up $12 billion of the purchase and the $4 billion to be given in cash. For employee retention, Facebook will also be giving additional $3 billion in restricted stock units or RSU. Should regulatory authorities fail to approve the deal, Facebook will have to pay a cash amount of $1 billion and another $1 billion in shares as termination fee, the report said.

In a blog post, Facebook said WhatsApp will still keep its brand and function as an independent unit. WhatsApp Co-Founder and Chief Executive Officer Jan Koum will also be joining the Board of Directors of Facebook, the report said.

According to the social media behemoth, WhatsApp has more than 450 million monthly active users. An estimated 70% of these users are active on the platform on a daily basis. Facebook also added that WhatsApp messaging volume is nearing the SMS volume of the whole telecom industry around the world where 1 million users are added on a daily basis, the report said.

In a blog post about the acquisition, Facebook Founder and Chief Executive Officer Mark Zuckerberg said, "WhatsApp had every option in the world so I'm thrilled that they chose to work with us. I'm looking forward to what Facebook and WhatsApp can do together, and to developing great new mobile services that give people even more options for connecting. I've also known Jan for a long time, and I know that we both share the vision of making the world more open and connected. I'm particularly happy that Jan has agreed to join the Facebook board and partner with me to shape Facebook's future as well as WhatsApp's."