Loopt Valuated at $500 Million

Loopt is reported to have been valuated at $500 million by investment bank Allen & Co.
Loopt has hired Allen & Co., either for a sale or to raise another round of funding. Best guess points to the latter.
The company has raised $13.3 million to date.
Once the big social networks (MySpace & Facebook) decide to get into Loopt’s location-based social space, will they develop the technology in-house, or is Loopt an acquisition target down the road? They’re clearly doing something right.