The world’s largest e-tailer, Facebook, on Monday acquired e- commerce company Amazon.com for an undisclosed amount in an effort to take on its rival Alibaba.
The announcement, first reported by CNBC and confirmed by a person familiar with the transaction, was seen as a sign of the e-business’ growing importance.
The deal is subject to regulatory approval.
Facebook had previously stated that the acquisition would not disrupt its e-content offerings.
The acquisition comes as Facebook has expanded its reach through its acquisitions, launching products such as Instagram, WhatsApp, Messenger, Instagram Stories and Snapchat, and has opened up its search service to businesses.
Amazon, meanwhile, has been a major player in the online marketplace with its online grocery and delivery services, and its own Kindle Fire tablets and Kindle e-readers.
Amazon had previously said that the deal would not distract from its online services, such as Kindle, its Kindle Fire line of tablets and its Kindle e, Kindle 3 and Kindle 2 e-reading devices.
The move comes amid the eCommerce juggernaut’s recent acquisition of ecommerce firm ecommerce company Zomato, which offers online-only retailing services.
The deal will also expand the reach of Facebook’s Marketplace platform, which will now be available to more than 10 million users across Facebook’s platforms and apps.
Facebook also said it is also opening up its commerce platform to third-party businesses through a partnership with PayPal.
Amazon and Facebook have also agreed to buy rival e-reader and cloud storage company ePaper, which is a division of eCommerce giant Amazon.
The acquisition is valued at $1.7 billion.
Facebook has also entered into an agreement to purchase e-store platform Evernote, which was valued at more than $1 billion.