Facebook may be seeking more cash - reports

NEW YORK (CNNMoney.com) -- Facebook Inc. is looking to hedge funds and private equity investors for an additional $260 million in investments on top of the $240 million in funding it's already receiving from Microsoft, according to The Wall Street Journal.

The funding would value the social networking site at approximately $15 billion, the Journal said Thursday.

Rumors were rampant on the Internet that Facebook is seeking as much as $500 million in additional funding. A number of reports say two New York-based hedge funds have each agreed to put up $250 million in funding, in addition to Microsoft's investment.

A Facebook spokeswoman said the company does not comment on rumor or speculation.

Facebook plans to use funds from Microsoft (Charts, Fortune 500) and others to invest in technology, new hires, an international expansion and a new advertising system, according to The Wall Street Journal, citing sources familiar with the matter.