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  • Will Apple Buy Facebook?


    Sometimes rumors are so crazy that they just might be true.

    Vague but pointed remarks by Steve Jobs during his surprise appearance on the Apple conference call has led to some speculation that Apple may be considering buying - of all things - Facebook. Peter Kafka at the Wall Street Journal's All Things D blog points out that Apple has a whopping $51 billion in the bank and that they could afford to buy the social networking giant when it goes public.

    When asked yesterday on the earnings call why Apple shouldn't return some of its huge pile of cash to shareholders in the form of dividends, Jobs replied as follows:

    We strongly believe that one or more very strategic opportunities may come along, that we are in a unique position to take advantage of because of our strong cash position. You know, we've demonstrated a strong track record of being very disciplined with the use of our cash. We don't let it burn a hole in our pocket, we don't allow it to motivate us to do stupid acquisitions. And so I think that we'd like to continue to keep our powder dry, because we do feel that there are one or more strategic opportunities in the future. That's the biggest reason.
    Kafka has no inside information suggesting that the "strategic opportunities" include buying Facebook, but he lists the benefits of the acquisition to Apple. First and foremost, Apple can afford it. Facebook is still privately held by Mark Zuckerberg and associates, and has grown from a Harvard-only version of Hot or Not in 2003 to become a company that will have an estimated market value of $35 to $40 billion US when they go public, supposedly next year. Apple could easily cover that and still have money left over to buy a record label or TV studio or two. Secondly, there is the matter of Facebook's enormous user base: half a billion people, or one out of every fourteen humans on the planet Earth, has a Facebook page. Each one of these would presumably gain iTunes and FaceTime accounts, giving Apple unquestioned dominance in online music and video chat. Apple and Facebook aren't currently competing in any realm, but both are competing with Google, and it's probably worth a very large sum of money to Steve Jobs to be able to jab a stick in Eric Schmidt's eye.

    Additionally, there's significant synergy. The Facebook app for iPhone has been estimated to be one of the most used apps on the iPhone, with over 100 million active monthly users. David Kirkpatrick, author of The Facebook Effect, claims that he has heard from "someone who thought he knew the data that more than half of all usage of the iPhone of apps, other than those provided by the phone itself like telephony and email, is coming from Facebook."

    It's pure speculation, again, so it's wise to not put a whole lot of stock in these rumors. On the other hand, there was word last week that Steve Jobs had Mark Zuckerberg over for dinner. There have been no reports on what they discussed at the supposed meeting, but many speculated that it had to do with Facebook-Ping integration. It would be very interesting if the "integration" they were talking about was at a very different level.

    Source: TUAW
    This article was originally published in forum thread: Will Apple Buy Facebook? started by Paul Daniel Ash View original post
    Comments 76 Comments
    1. Andre8521's Avatar
      Andre8521 -
      hahahaha....

      wait but what if it is??


      DUN DUN
      DUUUNNNNN!!!!
    1. eyepoper's Avatar
      eyepoper -
      Haha
      I think mostly the iphone will become a Facebook Phone where areas everything is linked with FB... what you do you can link or post it on FB....
      Second I think that Apple will redesign the interface and I think it will become a nice and better performace thatn what FB is actualy right now with a lot of bugs in it.
      Third I think that Desktop computer of Apple (imac, macbook) .the Whole Os will also be based and intergrated with FB. You`ll be able to post any kind of things on FB directly from a Folder for example.

      And last..This will open many other doors for many other things... FB will become stable, more attractive with colors and interface...Itunes will be on you FB synciing with your iDevice like Mobile ME
    1. Atomi's Avatar
      Atomi -
      One thing for sure, facebook would be much more safer than it is now..
      And I dont see Apple doing things like "post a picture of yourself to facebook" = haha, we now own all right of your picture and we can use it out of the context, edit, share and even use it in porn industry..
    1. DevouredDreams's Avatar
      DevouredDreams -
      If apple bought facebook.. Would motoblur have to team with apple?
    1. seizlapee's Avatar
      seizlapee -
      steve stay away. Not a fun or facebook but you are one powerhungry guy. Stay away steve
    1. eyepoper's Avatar
      eyepoper -
      Quote Originally Posted by silent six View Post
      If apple bought facebook.. Would motoblur have to team with apple?


      DAMN.. You`re right....... forgot about Motoblur..
      Actually everyone that is linked to FB would be joining Apple.. and that would be kinda Great but also Bad !!
      DOnt know why BAD but..it would be bAD
    1. engelke2010's Avatar
      engelke2010 -
      Wait a minute... If Apple bought Facebook, would that mean all of the games would go away because they are flash-based?
    1. Antman217's Avatar
      Antman217 -
      Maybe they might buy it and then destroy it to improve ping! Did everyone forget about lala?
    1. zoso10's Avatar
      zoso10 -
      Quote Originally Posted by Shinner23 View Post
      I assume you didn't read the piece? It says:
      Facebook is still privately held by Mark Zuckerberg and associates, and has grown from a Harvard-only version of Hot or Not in 2003 to become a company that will have an estimated market value of $35 to $40 billion US when they go public, supposedly next year.
      No need to bust balls, and I read it. I'm just saying, just because they're 'supposedly' going public doesn't mean it's a definite yes.
    1. mortopher's Avatar
      mortopher -
      At least you formed the title as a question to let us know is was speculation...
    1. whereswaldo's Avatar
      whereswaldo -
      It seems like the Facebook support in ping might come back after all
    1. xxhorseriderxxx's Avatar
      xxhorseriderxxx -
      Facebook as imagined by Apple

      Strict censorship of display pictures: each must be reviewed before posted

      No flash content: Jobs thinks that kids play Farmville too much

      Facebook is closed: suddenly you won't see those "useless" groups

      Insanely minimalistic: remove all parts of user's profile pages until only the display picture and apple logo are on the page
    1. BrennenSB's Avatar
      BrennenSB -
      I don't see it happening, but it'd be cool if they did.
    1. domthebigbomb's Avatar
      domthebigbomb -
      if they buy facebook, does this mean theyll make us pay to use the app?
    1. athleticswimmer's Avatar
      athleticswimmer -
      if they buy facebook obviously it will be integrated into ping so then what will facebook be if ping has facebook plus ping itself?

      even though apple will rule the universe by buying facebook.

      i doubt it
    1. vruls's Avatar
      vruls -
      Meh, i use tuenti, a cheap immitation of facebook in spain
    1. carlos916's Avatar
      carlos916 -
      can one just imagine apple taking over facebook and then putting restrictions on it like all the apple stuff? not cool!
    1. Dorkenstein909's Avatar
      Dorkenstein909 -
      Quote Originally Posted by gbarielmoreno View Post
      I heard a rumor that steve jobs is a robot and apple is going to buy mcdonalds and start serving breakfast all day. I know this rumor sounds crazy, but it might be true.
      haha that made my day
    1. SnowLeo's Avatar
      SnowLeo -
      What has Messany done to the other writers who used to only write articles where the rumors at least had SOME base. Pure speculation is an understatement.

      ...You know, we've demonstrated a strong track record of being very disciplined with the use of our cash. We don't let it burn a hole in our pocket, we don't allow it to motivate us to do stupid acquisitions.
      Try reading your own quotes before you use them to make up crap. You guys are better than that.

      Quote Originally Posted by gbarielmoreno; View Post
      I heard a rumor that steve jobs is a robot and apple is going to buy mcdonalds and start serving breakfast all day. I know this rumor sounds crazy, but it might be true.
      a bunch of private investors did buy out BK so its possible. Apple can buy out any technology or not related $50 billion or less if they wanted to... but it just aint gonna happen. Even if antitrust laws didnt exist Steve said it himself. No stupid acquisitions. (So... only acquisitions that will "legally" give them a horizontal/vertical monopoly)
    1. ShredNasty's Avatar
      ShredNasty -
      Slow day, huh?