Is Google developing a new social network?

Google may have lost out on its bid to acquire facebook,but does google really need facebook?

Rumor has it that google is set to launch their own social network code named MakaMaka .(friend in hawaiian ).
Google will be set to combine,gmail,i google,google calendar,and many 
more of its  applications along with the service.Offering much more than other social networks.

Tech Crunch has a detailed announcement on MakaMaka.
Source: Steven Wilson Marketing