Apple to Take a Bite out of Facebook? - The UpStream

Apple to Take a Bite out of Facebook?

posted Tuesday Oct 19, 2010 by Scott Ertz

Apple to Take a Bite out of Facebook?

Here is a scary prospect for you - Apple might want to buy Facebook. Peter Kafka of All Things Digital has been trying to figure out what Apple is planning for the $51 billion they are holding in cash and this is what he has come to. When asked about the money, Steve Jobs said,

We firmly believe that one or more unique strategic opportunities will present itself to us, and we'll be in a position to take advantage of it.

For more on Apple's possible plans, hit the break.

So, could Apple actually be planning a takeover of Facebook? Well, Facebook is currently valued at $25-35 billion and Apple has $51 billion burning a hole in its pocket. Also, Apple and Facebook have almost zero competitive factors, unless you consider Ping a viable competitor. This means that an integration would mean a loss of no Apple properties and little to no crossover integration required immediately.

Facebook also has 500 million users meaning an integration with the iTunes store would mean that there were 500 million iTunes accounts instantly. Anyone with a Facebook could then have an iTunes store account. The problem there is it would take every new user buying $70 worth of stuff to break even. What might the chances of that be?

Facebook CEO Mark Zuckerberg and Apple CEO Steve Jobs did have dinner last week. While everyone assumes they talked about Ping and Facebook Connect integration with iTunes it is just as likely that they talked about a full corporate buyout. The two men do have a lot in common, including being douche-bags with movies made about them.

Could these two equally evil men really team up to form one powerful corporation? What do you think? Let us know in the comments section.


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