Please be true to your denials then. It is a waste of resource to compete against facebook in social networking. Use your resources to improve your products instead.. or innovations ;D
That's exactly what they would say if they were making a rival to Facebook! Therefore they must be making a Facebook competitor. Logic.
But seriously, they shouldn't waste their time at this point. To have an even decent break into the market you have to be able to market on an absolutely massive scale which means dropping equally massive resources.