(SAN FRANCISCO) Facebook has raised US$60 million from Hong Kong billionaire Li Ka-shing, adding to the list of financial heavyweights backing the online hangout's rapid growth.

Mr Li, 79, will receive a 0.4 per cent stake in Palo Alto-based Facebook in return for his investment, according to a person familiar with the matter who requested anonymity because the person was not authorised to speak publicly.

The cash is coming from Mr Li's personal foundation, the person said.

The billionaire's business interests, anchored by the Hong Kong conglomerate Hutchison Whampoa, are not involved.

The investment means the 3-year-old startup now has support from both the richest man in Asia and the world's largest software maker, Microsoft, which paid US$240 million for a 1.6 per cent stake in October. With an estimated US$23 billion fortune, Mr Li is the ninth wealthiest individual worldwide, based on estimates gathered in an annual survey by Forbes magazine.

The stakes acquired by Mr Li and Microsoft imply a US$15 billion value for Facebook, which is privately held. That valuation presumes the company will substantially increase its revenue, which is expected to exceed US$150 million this year.

Facebook hopes to boost its profits with new ways for advertisers to connect with its audience of 55 million users, now the second largest social network on the Web behind News Corp's MySpace.com.

A marketing initiative called Beacon, which Facebook introduced last month, agitated thousands of users because it circulated potentially sensitive information about their online purchases and other activity. Stung by the backlash, Facebook last week promised it would no longer share any information collected in the Beacon program unless users gave their explicit permission.

Facebook may raise as much as US$200 million more to help fund a plan to more than double its work force of 300 during the next year. It has explored selling small stakes to private equity firms but hasn't been able to settle on terms.

One possible sticking point has been Facebook's reluctance to give major investors a seat on its board of directors. Neither Microsoft nor Mr Li gained a seat in exchange for investing.

Facebook's fundraising window will likely close in late January, according to the person familiar with Mr Li's investment.

Facebook hasn't set a timetable for going public, but Silicon Valley cognoscenti are betting the company will launch an initial public offering of stock in 2009. -- AP

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