Feeds

AOL to sell or shutter Bebo

$850m mistake

5 things you didn’t know about cloud backup

It's uncertain whether Bebo will or will not survive into June, but one thing is certain: the declining social networking website will no longer be under AOL's wing.

In a memo obtained by PaidContent and published by Silicon Alley Insider, AOL Ventures' Jon Brod stated the obvious:

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

Brod then upped the obviousness ante by saying: "AOL is not in a position at this time to further fund and support Bebo in pursuing a turnaround in social networking."

Exactly two years and three weeks ago, AOL bought Bebo for a hefty $850m. At that time, Bebo was in competition with MySpace and Facebook for top social networking site. We all know which Web2.0rheic property won that battle.

At the time of the acquisition, AOL's then-prez Ron Grant enthused: "Bebo's dynamic management team recognizes that the internet is less about destination and more about connecting people, culture and lifestyles," and added that: "This acquisition supports our key objectives – accelerating the growth, engagement and monetization of one of the world’s most engaged online communities."

Grant was shown the door one year later. Two months after that, AOL exec Joanna Shields, who came to AOL as part of the Bebo acquisition, was gone as well - "to reunite her family and explore her entrepreneurial interests", as explained in a memo from AOL's then-new CEO Tim Armstrong.

Jon Brod's recent memo is less euphemistic. After announcig the "sale or shut down of Bebo," Brod notes: "Obviously this is significant news - particularly for the Bebo team." Indeed.

According to Brod, AOL is "committed to working quickly to determine if there are any interested parties for Bebo." The company's self-imposed deadline for either finding a buyer or shuttering the once-promising site is the end of next month. ®

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
EE fails to apologise for HUGE T-Mobile outage that hit Brits on Friday
Customer: 'Please change your name to occasionally somewhere'
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?