We reported about this 10 days ago, and now NewsObserver follows up on it: Motricity’s fund raising is going on and may reach $170 million. It has already raised about $200 million since being founded in 2001, and this new round is to pay for acquiring InfoSpace’s (NSDQ: INSP) mobile infrastructure division.

Wireless industry analyst Scott Sutherland estimated Motricity’s current annual revenue at $50 million to $60 million, the story says, and it needs to get bigger for an IPO debut, the logic goes. The InfoSpace division is on track to gross about $45 million this year, probably enough to push Motricity over the hump.

• Motricity’s Possibly Buying InfoSpace’s Mobile Unit; Raising $175 Million; The Elusive IPO
• InfoSpace Sells Online Directory Business To Idearc For $225 Million