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.
Share this..
Related stories
National Savings and Investments set to shake up savings market
The National Savings and Investment body has launched a one-year 3.95% fixed-rate savings bond which has caught the attention of consumers and savers in the UK. This is significantly higher than the vast majority of savings accounts and savings bonds offered in the wider market and will no doubt put significant pressure upon other companies in the UK to follow suit. However, there may well be othe...
Read MoreWhen will the UK government sell its banking stakes?
Only a few months ago there was constant chatter in the markets that the UK government was on the verge of disposing of sizeable stakes in Royal Bank of Scotland and Lloyds bank. However, over the last few weeks this chatter has subsided amid concerns regarding the short to medium term prospects for the UK banking industry and the economy as a whole. So when will the UK government dispose of stake...
Read MoreGoldman Sachs brought into Matalan auction
26/12/2009 John Hargreaves, the 65-year-old owner of Matalan, has brought in financial highfliers Goldman Sachs to work alongside PricewaterhouseCoopers on the proposed sale of his business. There have been a number of offers in the region £1.5 billion for the business although it is said that the company is concerned about the slow pace of progress over the last few weeks. Matalan is a com...
Read MoreNational Express set for cash call
Rumours in the city today suggest that National Express is set to ask investors for an additional £400 million as the fallout from the East Coast mainline saga continues. As we covered in some of our recent posts, the company was forced to give back its franchise to the East Coast mainline as losses continued to mount and the company could see no way out the predicament. There will be a significa...
Read MoreGlossary of Investment Terms (R)
The following are useful investment terms beginning with ‘R’: Rally A sharp rise following a decline in the price of an investment. Rate of Return The yield earned in relation to a capital amount invested. Real Estate Real Estate takes into account land, buildings or housing, and is distinct from personal property (e.g. cars) to di...
Read More