Why did Facebook acquire WhatsApp?

Several reasons

WhatsApp was a threat. Several user studies have shown that

Facebook has been losing potential smartphone users to WhatsApp. There
is a lack of overlap between WhatsApp and Facebook users. In the near
future, it was poised to eclipse Facebook as the prime social messaging +
photo sharing smartphone app.

The messaging market is huge and Facebook wants in. Working

on an IM app has lent me some insights into the messaging industry.
Facebook tried to up its game too late, as did Google, through the release
of the new Facebook messenger and Hangouts, respectively. I'm not sure
how well that fared for them, but WhatsApp has the user base Facebook
needs and is witnessing phenomenal growth even now. Messaging has
started taking precedence over other means of mobile communication. The
finding below supports this claim.

For a smartphone user, Facebook is just another social

networking app. Facebook's strength is its desktop website, where it is
unparalleled. However, Facebook faces tough competition in acquiring
users from the mobile channel. Facebook is not just a product anymore, it
is a corporation and needed to strengthen its presence in the mobile
market. This also ties in with their decision to acquire Instagram.

Lack of growth in the teenage market. Snapchat and other apps

have captured the imagination and fleeting fancies of teens while Facebook
has lagged. WhatsApp is growing fast in that segment as well.

Horizontal integration: Facebook's aim is to reach "billions of users".

It is primarily a social company and WhatsApp provides the opportunity to
achieve this aim. FB has huge social content but hasn't been able to make
a mark globally in communication till now

Ensure robust growth in the smartphone market: The future of

social media lies in the smartphone/tablet market. With strategic moves
like the acquisition of Instagram and the launch of Facebook paper,
Facebook is trying to ensure that it continues to grow with the growth in
smart devices

Re-claim losing market share among teens: Facebook needs to

ensure that it remains the 'cool' social media platform among shifting
tastes of the youth. Reportedly, Facebook's growth has flattened among
youth and negative among young teens. Whats App has witnessed a strong
user growth in 16-24 age bracket

Expand its reach into Europe and Emerging Markets: FB

messenger has helped Facebook make a strong presence in US and
Canada. Outside US and Canada, Facebook was a late entrant in the
messaging market globally (2011). WhatsApp, launched in 2009, is the
dominant messaging app in Europe and India. Facebook Messenger's
market share is only next to Whats App in the messaging market. However,

it is worthwhile to note that Facebook has mentioned that it will continue to

invest in both Facebook Messenger and WhatsApp

WhatsApp accelerated new user growth: Whats App has shown a

strong trajectory in terms of growth of new user base. It has 450 million
users (70% active on any given day) and a million more are joining each
day