The Wall Street Journal has reported that Google is working on a social networking solution to compete with Facebook, although when asked if the solution will resemble Facebook, CEO Eric Schmidt said, "The world doesn't need a copy of the same thing." They are talking with top game developers like Playfish and Zynga (the company that brought Farmville to Facebook).
Google already owns Orkut, a social network that enables instant messaging and the sharing of photos and videos, just like Facebook.
If you remember, I previously blogged about four guys who were taking on Facebook with their own solution, Diaspora. Will anyone ever be able to tame the Facebook beast, or are all attempts in vain?
Google is big and smart and rich and Facebook is a UI nightmare, so maybe there's a way for Google to win here, but they haven't won at everything and they don't make money on everything. They still make most of their money from search ads.
Lotsa luck guys!