Yesterday, BoomTown opined that Microsoft was nearing a decision on who would become the head of its digital efforts.

And, according to several sources and some puzzling by me–if an agreement can be reached–I think that Microsoft (MSFT) CEO Steve Ballmer’s top choice is former Yahoo tech star Qi Lu.

While this is by no means a done deal, Lu is just the kind of top tech exec that Ballmer and Microsoft would warm to over a more media-centric choice like former Yahoo COO Dan Rosensweig or former AOL head Jon Miller.

Lu was EVP of engineering for the Search and Advertising Technology Group at Yahoo (YHOO), where he ran all development initiatives for its search and monetization platforms. He was at Yahoo for a decade.

If Ballmer manages to pull off the hire of Lu–on the heels of already grabbing another top Yahoo search exec, Sean Suchter, which I reported on yesterday–the aggressive exec could almost be bypassing a Yahoo search partnership he has long sought by sucking the talent right out of the place instead.

Ballmer is like Edward in “Twilight,” attracting top-notch search execs to Microsoft’s Redmond HQ, as if they were geek versions of Bella.

Lu would be a different choice for the post than many had expected, with a much more technical background than one in online media or advertising sales.

But since all of Microsoft’s future rests on winning in the search and search advertising space and trying to catch up with its archrival Google (GOOG) from way back in the race, Lu is also well suited for the position.

If Lu takes the job, he will be the boss of three strong digital execs at Microsoft: Satya Nadella, the SVP who heads engineering for Microsoft’s search, portal and advertising platform group; Yusuf Mehdi, whose online services portfolio includes marketing, online audience business development and product management for MSN and the search properties; and Brian McAndrews, the SVP for the advertiser and publisher solutions group.

Lu is known as as solid manager, but he is also called a very nice man and unusually humble for a tech star by many, which could be a good influence on Microsoft.

Before Yahoo, Lu was on the staff of the IBM Almaden Research Center, and worked at both Carnegie Mellon University and Fudan University in China (he also got degrees from both places).

And, in the kind of cred Microsoft likes, Lu holds 20 U.S. patents.

He left Yahoo after becoming dissatisfied with all the turmoil there, quitting in June, without another job lined up.

Since he left Yahoo, there have been rumors that he might be headed to Microsoft, but not in such a prominent job.

There has also been speculation that Lu would take a position at Facebook or even return to China for a tech job.

The well-respected Lu certainly has a multitude of choices, but the chance to lead money-laden Microsoft’s digital efforts–as it suits up for battle with Google–is compelling.

BoomTown has been poking around to try to figure out who Ballmer would choose for the digital head, ever since the man who used to be in charge, Kevin Johnson, quit in July, after the software giant’s takeover bid to buy Yahoo failed.

Several people close to the situation say Microsoft’s Ballmer has been keeping the deliberations close to the vest–perhaps because so many of those he has targeted have declined to consider the job.

But this week, many sources both inside and outside the company have told me that Ballmer is close to announcing his choice.

Annoyingly, one source has decided to play a digital version of “The Da Vinci Code” with me, dribbling out clues–more technical than media, very well liked in Silicon Valley, humble–about the candidate, which he wanted me to solve as if I were Robert Langdon and on the hunt for the progeny of Jesus.

Well, my solution is in: Microsoft’s most promising digital Holy Grail is Lu.

On a related note, bizarrely, the day after this column broke the story about Lu’s leaving Yahoo, I caught him by accident in the background of a video I was doing at a Harvard Business School event honoring Facebook’s Mark Zuckerberg.

You can see him at 4:14 minutes in the video, laughing at me, as I bother Greylock Partners VC David Sze and make a bad pun related to former Yahoo exec Jeff Weiner’s departure from Yahoo.

Here’s that video:

Please see this disclosure related to me and Google.

According to several sources, Facebook has discussed eliminating the observer status slots from its board.

Those positions are currently held by Greylock Partners David Sze (pictured here) and also Paul Madera of Meritech Capital Partners, both of whom are early Facebook investors, and they currently remain on the board as they always have been.

In any case, it’s not clear if Facebook can remove that status from preferred investors.

But the company might be discussing it because–as Facebook grows–it needs a more formal board process, especially as it prepares for a public offering sometime in the future.

In that case, the observer slot might be eliminated as the company moves to add more full-time members to the board. Observers do not attend all parts of the board meetings.

While Madera (pictured here) and Sze, well-regarded and well-liked Silicon Valley investors, could be in line for those slots, Facebook is unlikely to want too many venture capitalists on the board permanently.

The board already includes Accel Partners’ Jim Breyer, whose firm has a large investment in the company; Founders Fund’s Peter Thiel, the original investor in the privately held social-networking site; and, more recently, longtime Silicon Valley entrepreneur Marc Andreessen.

Greylock and Meritech were one of the earlier investors in Facebook, although its stake is smaller than that of Accel and Founders Fund.

A Facebook spokesperson had no information about such a development; I have a call and an email into Sze for comment, which he has not yet returned.

And, as usual, I was video-harassing Greylock Partner’s David Sze and James Slavet about the acquisition of Yahoo (YHOO) Network division head Jeff Weiner into the firm as an executive in residence.

I prodded: “This is the pair that sucked Weiner away from Yahoo. Not that it was hard.”

Sze then joked: “Hah! It was enjoyable! I may do it again!”

He may, apparently, because the man eating his dinner to Sze’s immediate right and quietly snickering at my video attack of the VCs is none other than Qi Lu (see the screen grab of the video below), the beloved rock star Yahoo tech leader.

Big irony: News of Lu’s departure from Yahoo was broken in this column last night.

Yes, I am an ace reporter, given I don’t even recognize my prey!

So why was Lu there at the Greylock table, especially since he is not an HBS alum?

Perhaps Sze was actually telling the truth and is interested in bringing Lu–who is incredibly well regarded at Yahoo and is said to be a prince of a guy–into Greylock as an executive in residence like Weiner.

Or maybe, just maybe, as the new CTO of Facebook, a job that is open now that Adam D’Angelo–longtime friend of Facebook CEO and Founder Mark Zuckerberg–vacated it recently.

Greylock is one of Facebook’s big investors and Sze is an observer to its board.

As Silicon Valley turns!

Here’s the whole video of the dinner again (Lu’s appearance is about four minutes in):

In a much-expected financing, LinkedIn has joined the big funding club (Slide, Spot Runner) of late, by raising $53 million at a startling $1 billion valuation.

Why go public when you can just pretend?

Actually, unlike a lot of Web 2.0 start-ups, the professional networking site, which had 23 million active monthly members in June, has been profitable since 2006.

According to execs, it has revenues of about $100 million a year, from premium subscriptions and job listings, as well was advertising and corporate sales.

The new slug of cash comes from new investor Bain Capital Ventures, along with existing investors Sequoia Capital, Greylock Partners, and Bessemer Ventures.

LinkedIn had previously raised $27 million for a total of $80 million. Yipes!

“This additional funding will give us even more flexibility to execute on our vision for millions of professionals to increase their effectiveness by using LinkedIn to build relationships and exchange knowledge, opportunities and advice,” wrote LinkedIn CEO Dan Nye (pictured here) in a blog post tonight.

In an interview with LinkedIn’s founding CEO and Chairman Reid Hoffman (pictured here) today, he told BoomTown that the money raised would be used for corporate development and acquisitions.

“We’ll be doing small technology acquisitions to improve our service,” said Hoffman. He also noted that it was unlikely the company would be doing an IPO in the immediate future, which has been bandied about.

“We have no immediate plans” for a public offering, said Hoffman. “We still have a lot of ground to cover to grow.”

Comparing the the business-oriented LinkedIn professional network with hot social networks like Facebook, Hoffman noted: “They have page views and time on the site and are looking for a scalable economic model and we have an economic model and will focus on growing usage.”

LinkedIn certainly has been growing its coffers. It raised $5.2 million in its first round, $10 million in its second and $12.8 million in its third.

Here is a video of LinkedIn’s investors trying mightily to play down the $1 billion valuation, while also pumping it up.

You gotta love the cheerleading of Greylock’s David Sze, Bessemer’s David Cowan and Mark Kvamme of Sequoia, along with new investor Jeffrey Glass of Bain (who will join LinkedIn’s board as an observer):

That obviously means Weiner (pictured here) is officially out at Yahoo (YHOO) too.

[UPDATE: Accel just announced the move on its Web site here.]

Of course, loyal readers of BoomTown would have known about this development last week, when this column broke the news of Weiner’s departure from Yahoo, where he was one of its top execs, in charge of all consumer-facing products at the company.

Now, he will presumably be dispensing advice to Web 2.0 start-ups, most of whom are probably interested in being bought by a consumer-facing company like Yahoo.

From the Accel release: “Weiner will advise the leadership teams of existing Accel and Greylock consumer technology portfolio companies, and will also work closely with the firm’s partners to evaluate new investment opportunities.

“ ‘Jeff’s operational experience in scaling products, teams and revenue will help Greylock enhance our capabilities and add value to our investments,’ said David Sze, general partner at Greylock.

“Weiner brings outstanding leadership experience and a deep knowledge of the consumer Internet and digital media sector to his new role. ‘We are thrilled to have access to Jeff’s perspective on Web product strategy and operations,’ said Theresia Ranzetta, general partner at Accel. ‘Additionally, we look forward to leveraging Jeff’s expertise regarding the convergence of media and technology for existing and future Accel portfolio properties.’ “

Shuttling between two firms is an unusual arrangement, although Accel and Greylock have made some investments together, such as in the hot social network Facebook.

As I also noted, it is unlikely that Weiner will be replaced at Yahoo, with more power likely to flow to Global Partner Solutions EVP Hilary Schneider, which I posted on last week too.

In other words, Yahoo is about to undergo yet another heavy-handed, ornery organization (YAHOO!).

Silicon Valley luminary Marc Andreessen (pictured here) has been asked to join the board of Facebook, according to several sources with knowledge of the situation.

While the arrangement is not completed yet, sources said the longtime entrepreneur has verbally agreed to accept the post to become the fourth member of the board of the Palo Alto, Calif.-based social-networking site.

Other board members include Accel Partners Jim Breyer, Founders Fund’s Peter Thiel and Facebook CEO and Founder Mark Zuckerberg. Greylock Partners David Sze also has observer status on the board.

Since he co-founded browser pioneer Netscape in the 1990s and helped usher in the Internet age, Andreessen has been an active investor and has created several successful start-ups.

His most current effort has been Ning, also based in Palo Alto, which is a white-label social-networking company that recently raised another $60 million in funding.

If Andreessen joins Facebook’s board, the move is yet another sign that the much-hyped start-up, which has undergone some growing pains over the last year, as well as garnering a $15 billion valuation, is growing up by bringing some major high-profile tech figures into its ranks.

Last night, for example, BoomTown broke the news that Google PR head Elliot Schrage had accepted a similiar job at Facebook.

That comes after Facebook hired another top Google (GOOG) exec, Sheryl Sandberg, as its COO, in March.

A while back, BoomTown suggested that Web 1.0 golden boy Andreessen–pictured here on the iconic Time magazine cover in 1996–would be a good mentor for current golden boy Zuckerberg, in a piece I did about potential execs for Facebook.

As I wrote in February:

But why not go for the man who was Zuckerberg before Zuckerberg was cool. Yes, the shiniest of Golden Geeks himself, Marc Andreessen.

I could go on and on about the similarities I find between the two, if you compared today’s Zuckerberg with the Netscape founder in the mid-1990s.

From their arrogant innocence to their visionary qualities to their enfant-terrible charm, it is almost as if they were separated at birth.

But now Andreessen is all grown up and much, much matured from when I covered him. He has become all calm and sage and he even does a very decent blog.

Plus, he has also started and run a number of start-ups after Netscape, giving him deeper managerial experience over the last dozen years.

And, best of all, Andreessen knows the pressure of being the best-thing-since-sliced-bread in the tech sector, and its inevitable downside too.

Overall, a real mentor and partner for Zuckerberg, making a perfect pair of Golden Geeks.”

And surly, given that we always have a lot to say about Facebook. (OK, OK, one tidbit: Its execs and investors have been disagreeing over how big a new investment to take–the operations folks want more cash and the VCs less dilution.)

That does not mean I do not hope to break news of what Facebook finally manages to decide to do, both with regard to partners and its funding, but that I will bow out of parsing this particular set of deals in excessive detail.

But our ennui got us thinking to back in mid-August, when we did a post making our own Facebook of the top execs there using your basic corporate shots.

So now, before they become all rich and start flying private, we compiled from less corporate pictures we found right on Facebook and the Web–we were going for a more fun Facebook of the players here.

We used all the execs from the last one, but we also added one woman, PR maven Brandee Barker, as well as the three principal VCs.

Co-founder and CEO Mark Zuckerberg in a picture presumably taken at Harvard. He looks so young and naive. Kind of like now.

Zuckerberg best buddy and tech genius Adam D’Angelo (VP and CTO) on a thrilling night at Foo Camp! What could be more fun than an overhead projector and a room full of geeky guys!

Who knew co-founder and VP of Engineering Dustin Moskovitz was such a fox? His future is so bright, he needs those rad shades!

What deft bit of performance art is wacky Owen Van Natta, VP of Operations and Chief Revenue Officer, performing here? A meditation on life as an underling of various and sundry Web moguls–all Silly String and sorrows?

We have no idea what Chamath Palihapitiya, VP of Product Marketing and Operations, is doing, but it looks cool, and he’s dressed natty as always.

Hey, who also knew that VP of Strategy and Operations Matt Cohler was in a 1990s techno-rock duo? (Oh, he’s the one without the shades.)

VP and CFO Gideon “Death Cat” Yu used to have to drink from public fountains, but soon he’ll have his own, spewing only the finest champagne!

It is hard to know where to begin with this picture of PR head Brandee Barker (is she headed for the Castro Street Fair?). But I say: Own it, sister!

There are exactly zero interesting pictures of doubtlessly interesting Founders Fund VC Peter Thiel online (and we looked hard). That’s him on the right, looking the most normal of this PayPal crew.

Again, it is hard to know exactly what Accel Partners VC Jim Breyer is up to here, but we think the hat might be a new and exciting look for him.

Greylock Partners VC David Sze is thinking really hard about how he can say Facebook is worth $15 billion and still keep a straight face and refrain from cackling in front of all the other VCs at Il Fornaio.

We got some good answers to be sure (the video is reposted below), but we left out these two new ones we also did at the time from venture capitalist David Sze of Greylock Partners and Max Levchin of Slide–both of whom were quite a bit sharper in tone! Tough love!

By the way, it’s Day 83 (not that we’re counting or anything), so get ready for my special 10-day countdown starting in one week!

It’ll be like the 12 days of Christmas, but without partridges, pear trees or any golden-ring harmonizing (although we are considering 300 Yahoo Vice Presidents a-leaping!)

Here’s Sze and Levchin:

The event–this year at Foreign Cinema in the Mission District of San Francisco–is held to elicit feedback from the Internet’s movers and shakers about the new directions the conference, set to take place in San Francisco in mid-October, should head in.

Except Battelle and O’Reilly already came up with a theme: “The Web’s Edge.”

I am not entirely sure what that means. Is it that it is at an edge? Or that we need to look at the edge? Or just that things just feel all pointy lately? Big thoughts all!

In any case, the party was a lot of fun and filled with digital personalities, like Mitch Kapor and Ann Winblad, as well as a few folks I interviewed like ex-AOLer Jon Miller, ex-Fox exec Ross Levinsohn, VC David Sze, Tina Sharkey of BabyCenter and Webby Awards founder Tiffany Shlain.

Here’s the video: