Rumors abound that Google is buying Quiksee for an estimated $10 million. That’s according to Israeli newspaper Haaretz which reports that “two investment groups have put $3.5 million into Quiksee, Ofer Hi-Tech and Docor International, while a number of private investment 'angels' have also backed the firm.” If true, the acquisition marks Google’s second Israeli purchase this year, the first being startup, LabPixies. The reported move also highlights Google’s efforts to strengthen its foothold in the highly competitive social networking market.

According to its website, Quiksee, also known as MentorWave Technologies, helps people create location-based interactive videos. “Our team consists of web and media savvy entrepreneurs with lots of experience and tons of enthusiasm. Our vision is to fill the world maps with Quiksee tours that will let people virtually travel across the planet as if they were there.”

Google’s acquisition of Quiksee would help the company in its bid to build a social-networking service fit to rival Facebook. In July, the Wall Street Journal reported that Google is holding talks with online game developers including Playdom, which was recently acquired by The Walt Disney Co., Electronic Arts’s Playfish and Zynga, in which Google has a stake.

And then there are those pesky rumors that Google is launching a Facebook competitor called ‘Google Me.’ Kevin Rose of Digg recently set off speculation with a tweet that Google was working on the rival social service.

In the meantime, Google’s shopping spree continues. Google purchased six companies in August, a single-month record for the company. This year alone, Google has purchased 21 companies, compared to its previous annual record of 16 in 2007. Many of these acquisitions relate to social networking including SocialDeck, Angstro, Jambool, and Slide.com.