Social Site Bebo to Be Shut Down or Sold
Aol. is giving up on Bebo only two years after paying $850 million for the social-networking start-up.
Bebo also sent out a staff memo which said, “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 …“
Social networking is a tough market these days with the dominance of Facebook and Twitter, and the slowly declining Myspace, which have the backing of large companies such as Microsoft.
Bebo is quite popular in Ireland, New Zealand and the UK, however it has failed to make any real impact in the United States. It’s hard to predict whether a larger organization will acquire Bebo, as it may seem much to tough of a challenge to take up.
I imagine AOL will sell it – perhaps some enterprising venture and private equity investors will swoop in to buy it at a discount, as happened with Skype? Or maybe Facebook should acquire it to conquer Europe in exchange for stock?
Only time will tell.