• D: All Things Digital, Tuesday, September 11, 2007 10:47 AM

As Facebook continues to roll out new features and innovations, its top dogs are mulling what to do next from an investment standpoint. For example, should the social network invest in new properties to help spur growth, or should it seek an IPO? There's always the option of selling, but sources tell Kara Swisher of D: All Things Digital the answer is none of the above. Instead, Mark Zuckerberg and co. are looking to raise more money.

Which makes sense: Facebook is getting a lot of interest these days from investment funds as well as the Web's big dogs, like Microsoft, its ad-serving partner. Who, how much and what form the investment will take is uncertain, but with heavy hitters circling, Swisher expects the 40 million-strong social network to attract far more than the $26 million it raised during its last round of financing in 2006. As one of her sources, an interested investor said, "There are several B's involved in the discussions."

Several B's have been mentioned before regarding Facebook's valuation, from Yahoo's takeover talks for just under $1 billion in early 2006 to Microsoft's purported $6 billion bid several months later. A few months ago, Peter Thiel, one of Facebook's principal investors, discussed all manner of options with The Deal, saying the company would listen to an offer for $10 billion, but "I don't think we're going to get that offer," he said, "and we're not going to solicit it." Thiel added that the company wouldn't go public until 2009 at the earliest, when its business is stronger--which means another round of financing would be a logical next step.

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