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Bebo 'to close down' if owner AOL cannot find buyer

Started by Admin , Apr 07 2010 09:58 AM

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#1 Admin

Co-Owner & Editor

Administrators
15,054 posts

Location: UK

Posted 07 April 2010 - 09:58 AM

The struggling Internet company AOL plans to sell or shut down the online community Bebo nearly two years after buying it for $850million (£557million).

In an email to employees on Tuesday, Jon Brod, who runs AOL's startup acquisition and investment unit said Bebo would need a 'significant investment' to remain competitive.

Although Bebo has been overshadowed by the likes of MySpace and Facebook, it has been strong in foreign markets, including Britain. AOL wanted to tap that strength abroad to drive traffic to AOL's other free, ad-supported Web sites, as well as building its U.S. audience by teaming it with live chat programs.

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