

Does Apple want to buy Facebook? - kylelibra
http://www.tuaw.com/2010/10/19/does-apple-want-to-buy-facebook/

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jsz0
_Facebook is something that Apple couldn't compete against even if it wanted_

They can't compete against Boeing either but I don't think anyone expects
Apple to buy them. Seriously though I think if Apple really wanted to they
could build their own homegrown social network and at least be a credible
player. They might not have 500M users overnight but 100M in a year? Sure.
Build it into the next version of iOS (~125M devices) Another 25-50M would
probably leave Facebook because there's a trendy new service in town. Apple's
wave of clever advertising gets them another 25M. In 2 or 3 years they have
40-50% as many users as Facebook and still have $51B in the bank. Then they
buy Boeing and integrate FaceTime into airplane seats.

I suspect if Apple was going to spend a ton of money they would want to sure
up their ability to deliver good products from a box of sand to a box on the
shelf at the Apple store. CPU/chip fab, flash memory production, display
technology/production, etc. They're not as exciting to talk about but I think
it makes a lot more sense. Maybe something in telecom since all those devices
need to be well connected.

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iuguy
This is the exact reason why Apple shouldn't want to buy facebook (at least
right now). The A4 chip is the first in a long line of supply chain
consolidation. I wouldn't be surprised if in a few years time we saw a Macbook
Air with an A4 type CPU and a more iOS-integrated OS X (for both x64 and A4).
The more ownership of the supply chain Apple has, the more they can inflict
quality control standards on to it, and the cheaper they can make equipment.

I think ping will succeed as far as Apple's initial goals are concerned (more
iTunes sales), but will fail as a social network until they find a compelling
way to integrate it into the iPhone experience. Personally, I think the killer
app for ping as a social network is messaging and status updates (as every
iPhone user has iTunes and thus access to ping) but Apple can't create a
messaging client without raining on the Carriers' and developers' parades.

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AlexMuir
Bouncing around ideas like this is so good for the brain. This is unlikely,
but not impossible.

I don't think Zuckerberg is going to allow Facebook to be bought by anybody,
he's doing the buying these days.

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kylelibra
I'm tempted to agree along those lines. If you turn down billions, why does
more billions suddenly appeal to you?

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covercash
It doesn't... but the chance to work along side one of your idols is a pretty
big factor.

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petervandijck
The chance to work for a new boss when you are doing great being the boss?
Nah.

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jamesaguilar
It would be the most significant departure from their existing product line
ever. It seems fantastically unlikely, as they mostly seem to build devices
and software specifically meant to run on those devices. Hard to see how their
core expertise in this area lines up with a Facebook acquisition.

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aycangulez
Facebook isn't elegant enough for Apple. Nor Steve needs any "synergies" to
sell more products.

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far33d
No way. Zuckerberg wants to BE a Steve Jobs, not work for him.

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weston
Maybe that's it.... maybe Jobs wants to buy Facebook to groom Zuck to be his
successor of the new Apple+Facebook company.

Jobs won't be there forever.

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tvon
Do you have any reasons in mind why would Jobs want to groom Zuck to be his
successor? They don't seem particularly similar to me.

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weston
Perhaps his hatred of Google runs so deep he feels Zuck is the only person who
can destroy them?

I'm not saying it makes perfect sense... Steve is an awesome madman genius...
he doesn't have to make sense.

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jordanlyall
Facebook is a bag of hurt.

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travisjeffery
I don't think it will happen simply for the fact that Steve doesn't compromise
and he's smart enough to know that this evaluation of Fb being worth over 33
billion is ridiculous -- he wouldn't pay that, ever.

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qq66
But is Apple worth $300 billion? One might argue that 10% of Apple is a fair
price to pay (perhaps even a bargain), even if both were reasonably priced.

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Keyframe
Maybe Jobs just has an OCD and wants to collect $100B in a bank.

Seriously though, why would they NEED to buy anything right now instead of
rolling out capital expenditures as they need (like that data center for $1B
recently) and keep cash at hand for potential new thing if there was an
opportunity where one would need to act quickly (and have cash to do so).

If those $51B assets are live cash, I would imagine it being a big burden just
to keep up with inflation eating it's way through it.

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Mahh
After all that talk from startup school about building and running facebook
for the fun, I don't think that zuckerberg is going to let facebook go.

For this situation, I'd just stick to the thought of facebook and apple having
a deal for social integration.

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danielayele
a buyout is probably unlikely (given how many offers/deals Zuck has either
rejected or pulled out of in the last minute over the past 6 years). That
said, he may be looking to Apple as a default liquidity provider which would
save Facebook from needing to go public. If existing VC firms seeking
liquidity and employees looking to cash out all sold to Apple that would
probably decrease their outstanding # of shareholders and keep them clear of
SEC regs for at least a little while longer. Also seems like a solid long term
relationship given both companies' strong focus on design, usability, and the
consumer.

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mattparcher
The TUAW story is a summary of the original point made by All Things Digital,
discussed at length here: <http://news.ycombinator.com/item?id=1805839>

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gfodor
I wouldn't believe it if it weren't for the fact that this would be the
biggest showing of balls in the Apple-Google war by far.

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borismus
Steve hates social networking. It's just too messy!

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SabrinaDent
God I hope so. At least Facebook would be in the hands of a literate design
team.

