We’ll admit off the bat that this one sounds a bit far-fetched. Then again, Palm is still doing business, so we suppose that anything is possible, huh? Word on the rumor mill is that Facebook is preparing to launch an MP3 download service to compete with the iTunes Music Store. The company is reportedly pursuing contracts with several major record labels, hoping to jump off with a large catalog out of the gate. The same rumor maintains that Facebook is also looking to hire a new CEO to head up the project, pointing to an attempt to establish the music service as an entirely separate business venture. We’re not going to pass judgement until we’ve seen a bit more proof, but if Facebook did indeed decide to launch a music store, and happened to have to have the foresight to keep the songs DRM free, we’re guessing that they might piss off a lot of those Facebook developers whom have crafted some of the more popular Facebook applications.