Facebook to Raise Series E Funding with Apple as Investor
mashable.com
mashable.com
FYI, "[RUMOR]" has been removed and replaced with "[DEBUNKED]". Nothing to see here.
"Update: We’ve had detailed conversations with Facebook, and its representatives have discredited our tipster, who didn’t have his facts straight."
"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."
The move obviously makes strategic sense but I don't see why Zuck wouldn't want to just use Apple as a pre-IPO (instead of issuing new shares) and let Fbook shareholders sell existing stock to Apple. Like I said earlier, this could help delay the need for an IPO for another few years (possibly longer).
Also, I could see some teamwork between their respective game platforms/businesses. Buy an App Store game, you get to share it with two of your Facebook friends (send them a download token), which creates many more word of mouth sales, etc. Just seems Apple are the people poised to actually capitalize on a massive social network user base.