When we first looked at the rumors we noted that making a phone with a Facebook OS would be a very bad thing and this was before their IPO. Now that they are publicly traded Facebook can simply not afford the risk. Instead they have been fixing something that has been broken for a while, their mobile presence. I cannot tell you the number of people that I know that use the web for Facebook on their iPads and Android Tablets. I know that I do because the Facebook apps are terribly slow. Facebook simply did not have the mobile know-how to fix these problems so they bought the right people to do the job.
The new team will be responsible for making sure that Facebook just works; on Android, iOS, Windows Phone, and of course the web. It needs this so that they can tap into the revenue stream that mobile users represent. That is what their new team is meant to do. Find a way to fix the Facebook mobile app and extend its use and functionality so that more people will use for a greater range of tasks.

There may have been some original delusions about a Facebook phone, but now it looks like those have been carefully put away for at least the foreseeable future.  Zuckerberg put it best saying; “Building our own phone won't make much sense for us” and he is right.

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