Business, Economics and Jobs

Facebook tries again at smartphone after botched IPO


Facebook CEO Mark Zuckerberg at the Facebook f8 conference in San Francisco, Calif., on Sept. 22, 2011.


Justin Sullivan

Facebook employees, several engineers who have been sought out by recruiters for the company, and those briefed on Facebook’s plans, say the company hopes to release its own smartphone by next year, according to the New York Times.

The sources spoke to the Times on the condition of anonymity. The Times said some half a dozen of those hired are former Apple software and hardware engineers who worked on the iPhone, and one who worked on the iPad.

This would be Facebook’s third effort at building a smartphone, according to the paper.

Competitor Google recently acquired Motorola Mobility for $12.5 billion, which could help it create its own smartphone, the Associated Press reported.

The news comes as Facebook scrambles to move forward as the company and its IPO underwriters continue to face allegations they gave an unfair advantage to preferred clients.

More from GlobalPost: Facebook stock declines, Morgan Stanley, Nasdaq under fire

Facebook's stock, which opened a week ago, Friday at $42.05 and fluctuated between $45 and $38 throughout the day, closed for the Memorial Day holiday at $31.91.

More from GlobalPost: Facebook stock experiences a volatile first day on the market

[View the story "Facebook is developing a smartphone, would you buy it?" on Storify]