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End Of The Road For Social Site Bebo?

Posted by surfingall on April 7, 2010

AOL Inc, the floundering Internet company, is planning to either sell or shut down the social networking community Bebo, nearly two years after paying $850 million for its acquisition in an attempt to include social networking within its ambit.

Yesterday Jon Brod, in charge of AOL’s start-up acquisition and investment unit, AOL Ventures, sent an e-mail to employees saying Bebo would require “significant investment” to pose any sort of challenge to its competitors. Though Bebo has long been overtaken by rivals such as Facebook, it retains a strong presence in foreign markets, including the United Kingdom.

But it is fast losing its market share in the United States. ComScore Inc estimates Bebo had 5.1 million American users in February 2010, a steep drop from the 5.8 million it boasted of a year earlier. Facebook, in comparison, has a staggering 210 million users, reports Yahoo! News. Brod ventured that AOL is scouting for potential buyers and may prepare a final report by May end.

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