UPDATE 1-Facebook seeks $260 mln extra funding--WSJ.com

Thu Oct 25, 2007 6:30pm EDT

(Adds background, details)

NEW YORK Oct 25 (Reuters) - Facebook, the social network Web site, is looking to hedge funds and private-equity investors to raise an additional $260 million in financing, the Wall Street Journal reported on its Web site on Thursday.

The report of the talks for additional funding comes a day after Microsoft Corp (MSFT.O) announced it would pay $240 million for a 1.6 percent stake in the Web phenomenon.

Microsoft and Facebook said on Wednesday it will take the stake in Facebook's next round of financing, giving the network a value of $15 billion.

The Wall Street Journal, citing people familiar with the matter, said an announcement of additional funding could be just several days away.

The company hopes to use the funding to invest in technology, hire more people and invest in projects including an international expansion and a new advertising system, the paper said, citing people familiar with the matter.

Facebook declined comment. (Reporting by Paul Thomasch and Megan Davies)

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