Reports indicate that Facebook is currently looking at raising new debt capital to replace a current $100 million line of credit. Facebook is projecting to generate over $400 million in advertising revenue in 2009. Facebook is believed to have $300 million in current cash as of right now. The issue here is, what is Facebook really worth as it tries to raise capital?

On February 12, 2009, Facebook board member/investor Peter Thai explained why a Twitter acquisition never happened: the deal would have been made primarily with Facebook stock. Facebook valued itself at $8-$9 billion, while Twitter found out Facebook employees were trading the stock at a valuation of more than half of the $8-$9 billion.

Facebook right now is believed to be burning up to $20 million in cash from operations and continues massive growth.

So, according to TechCrunch, Facebook is in fact looking to raise capital.

A Google investment or acquisition is also rumored, with Google valuing the company at only $2 billion, a valuation Facebook would never accept.