Well, that's what the speculators are suggesting. The Wall Street Journal yesterday posited a deal worth "close to $1bn", while the New York Times says founder Mark Zuckerberg is weighing up an offer of $900m.
To woo Zuckerberg, Yahoo offered about $900 million for Facebook and said it would keep the company somewhat independent, with Zuckerberg in charge. This has been its model with other acquisitions like Flickr, a photo-sharing site, and Del.icio.us, a social bookmarking service that lets members share lists of their favorite Web sites.
Facebook - essentially FriendsReunited meets Friendster - is a social network site mainly based around university students: whippersnapper Zuckerberg set it up for friends at Harvard. Now the ripe old age of 22, he owns the biggest share of the company (but not a majority) but doesn't seem like he wants to cash in - he's already reputedly turned down a $750m offer this year. Yahoo's had success in buying Flickr, delicious and others of late... but will it nab Facebook too?