Bebo Gets Bumped

Posted by Admin | April 6th, 2010

AOL has long been trying to re-invent itself. Once the titan of the Internet, it has been in a steady decline ever since it’s peak several years ago. In 2008 they purchased a popular social networking site called Bebo that has turned out to be a flop–with visits to the website decreasing by 12% last year alone. The deal reportedly cost $850 million, money which maybe have been wasted if this report is true.

AOL Inc. said Tuesday that it is evaluating whether to sell or shut down Bebo, the social-networking site it acquired for $850 million two years ago in a bid to reinvent itself by tapping into the social-networking craze.

“Bebo, unfortunately, is a business that has been declining and, as a result, would require significant investment in order to compete in the competitive social networking space,” Jon Brod, executive vice president of AOL Ventures, said in a message to employees.

My guess is that they’ll attempt to sell it, but it won’t fetch even a fourth of the price tag it had in 2008. The site simply never caught on in the United States–the country that drives social networking the most.