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Is Apple Planning to Buy Facebook?

October 24th, 2010 10:31 admin Leave a comment Go to comments

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When Apple CEO Steve Jobs and Facebook CEO Mark Zuckerberg were seen together at the formers' Palo Alto home a few days ago, it was speculated that they were in talks regarding the integration of Facebook to Ping, Apple's recently launched music based social network.

It was rumored back then, that Facebook and Apple were in talks regarding Ping much before its launch. However, that deal never went through and Apple launched Ping without Facebook integration. The meeting of the two CEO's was thought to be the beginning of a second round of talks between the two companies.

However, Steve Jobs comments during the conference call discussing Apple's fourth quarter results has put the spotlight back on Steve Jobs and Mark Zuckerberg's meeting. Did the meeting between both the CEO's have more to it than just Ping?

At the conference call, when Tony Sacconaghi of Bernstein Research had asked Jobs whether the $51 billion Apple has in cash reserves would be returned to the company's investors in the form of a dividend. Jobs responded by saying:

"We strongly believe one or more strategic opportunities will come along we're in a unique position to take advantage of. We don't let the cash burn a hole in the pocket or make stupid acquisitions. We'd like to continue to keep our powder dry because we think there are one or more strategic opportunities in the future."

While Jobs has confirmed that Apple is looking for “opportunities”, it shouldn't necessarily mean they would be buying a company. However, that hasn't stopped people from speculating that Apple could be looking at buying Facebook. In a blog post, Peter Kafka of MediaMemo opined that that it makes sense for Apple to buy Facebook and leverage its capabilities to take on Google:

It's a company that has yet to compete with or brush up against Apple in any significant way, and it's one that Apple seems unlikely to be able to move aside, even if it wanted to. And it's one that's already competing directly with Google, which has to make Jobs like it even more.

Apple has of late made quite a few small acquisitions including two digital mapping companies (Placebase and Poly9), personal assistant software developer – Siri, chipmaker – Intrinsity, mobile advertising firm – Quattro wireless and digital streaming music service – Lala. 

What do you think of Apple buying Facebook? Let us know your views in the comments section below.

[Via MediaMemo]

Source: Is Apple Planning to Buy Facebook?

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