Wednesday, April 07, 2010

AOL Plans to Sell or Close Bebo, a Social Network - Bits Blog - NYTimes.com

Another dismal AOL ROI case study

Two years after AOL bought the social networking site Bebo for $850 million, the company plans to sell or shutter the site.

AOL sent a memo to employees on Tuesday saying it would no longer pump money into Bebo and was seeking a buyer for it.

“It is clear that social networking is a space with heavy competition, and where scale defines success,” the memo 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.”

AOL Plans to Sell or Close Bebo, a Social Network - Bits Blog - NYTimes.com

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