Facebook Seeks Hedge Fund Cash After Microsoft Deal

Social networking site now valued at $15B
By Peter Fearon,  Newser Staff
Posted Oct 26, 2007 1:12 AM CDT
Facebook.com's mastermind, Mark Zuckerberg smiles at his office in Palo Alto, Calif. in this Feb. 5, 2007 file photo. Rapidly rising Internet star Facebook Inc. has sold a 1.6 percent stake to Microsoft...   (Associated Press)
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(Newser) – After raising $240 million from Microsoft, the social networking site Facebook expects to raise a further $260 million from hedge funds and private-equity investors, according to the Wall Street Journal. The cash will be used to fund an international expansion and a new ad revenue system. The investment would put the value of Facebook at $15 billion.

Microsoft becomes the exclusive broker of display ads on international versions of Facebook.  Meanwhile, Facebook is developing a system of its own that will target individual users based on personal information. "We have a good working relationship and are excited about the future," a Microsoft spokesman said.  "We'll both continue to evolve ad products."