Is AOL set to ditch social networking site Bebo?
It is believed that Internet giant AOL is looking at potentially closing its social networking operation Bebo which was acquired for USD850 million back in 2008. Despite the fact that social networking sites have increased in popularity over the last few years, it would appear that Bebo has been left behind and potentially starved of investment funding. Initially it is believed that AOL was looking to sell the operation although recently it would appear the decision has been made to close down the website.
AOL acquired the Bebo operation from Michael Birch and his partner Xochi back in 2008 at a time when social networking appeared to be the ultimate way to communicate with Internet surfers. However, since the acquisition of Bebo, the likes of Facebook have pushed ahead with multimillion pound advertising deals and multimillion pound investment funding. This has left Bebo further and further behind with many concerned that AOL focused too much of its investment capital on AOL instant messaging.
Those close to the Bebo operation are not surprised by the announcement this week with user numbers falling from a high of 40 million a month to just 12 million in February 2010. In the cutthroat world of social networking there are sure to be more high-profile victims along the way.
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