Is Apple Planning to Buy Or Invest In Facebook?

News | Saturday October 23 2010 8:52 AM | Comments (0) Tags: , , ,

However, Steve Jobs comments during the conference call discussing
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 ablog 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.
and Poly9), personal assistant software developer – Siri, chipmaker – Intrinsity, mobile advertising firm – Quattro wireless and digital streaming music service – Lala.
Just as we published this post,
has reported that Facebook is looking at raising Series E funding with Apple as an investor. They report:
“According to our tipster, the world’s largest social network will raise a new round of funding in the next few months to fuel its growth and bridge the gap between now and its eventual IPO. The potential amount of the Series E round wasn’t revealed. Facebook has already raised four rounds of funding along with an angel round in its six years of existence, amounting to over half a billion dollars.
It’s the second piece of information from our tipster that really piqued our interest, though. Leading the potential round will be Digital Sky Technologies (an existing investor) and Apple . Yes, Apple . The funding is part of a partnership between the two companies that will eventually result in deep Facebook integration into Apple ’s suite of products, including Ping, iTunes, iLife and iWork.”
Apple investing in Facebook for a strategic partnership makes a lot more sense then spending a large chunk of their cash reserves in buying Facebook. Things are going to get a lot more interesting if that happens.
What do you think of Apple buying or investing in Facebook? Let us know your views in the comments section below.

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