Facebook is buying social networking company Facebook for an undisclosed amount, according to people familiar with the deal.
The deal is expected to close in the fourth quarter.
Facebook is known for its advertising business and for building a popular product for its users.
The company has said it wants to be an online community rather than a marketing platform.
Facebook CEO Mark Zuckerberg said at the company’s annual shareholders meeting last month that the social network will not be profitable for a long time.
Facebook declined to comment.
It is investing $1 billion to help it compete with Snapchat, a photo-sharing app that is valued at $23 billion.
Facebook bought Instagram for $1.9 billion in 2012.
Its new acquisition of the social networking service will help it scale its business.
Facebook said in its most recent quarterly earnings report that its revenue grew 7.4% to $5.9 trillion.
In its most-recent quarter, Facebook reported that its users spent a record $9.5 billion on Facebook-related advertising, up nearly 25% from a year earlier.
Facebook has also said it will expand its service to more people in emerging markets, where it was previously only available to a select group of users.
Facebook will also invest in its digital ad business, which is valued between $8 billion and $12 billion.
For the first time, Facebook is getting into the mobile space, with a deal that could help it become a more prominent player in the crowded mobile app market.
Facebook, which last year reported $2.2 billion in revenue, has said that it aims to have more than 25 million users on Facebook by 2021.
Facebook also said at its annual meeting last week that its ad revenue for the third quarter fell 8.1% to around $1,958 million.
Facebook’s stock has been on a tear this year, surging from $25.25 in June to nearly $100 a share in late September.
Facebook shares have fallen 25% in 2017, though they have gained nearly 70% this year.