Feeds

AOL offloads Bebo - for 'exceptionally uninspiring number'?

Total value destruction

Top 5 reasons to deploy VMware with Tegile

Updated AOL is set to reap an "exceptionally uninspiring" sum for Bebo, the moribund social networking site for which it paid $850m just two years ago.

The Wall Street Journal says a sale could be announced today, with the likely buyer Criterion Capital Partners LLC of Studio City California. This is an interesting location - a suburb of LA nowhere near Silicon Valley.

The deal was confirmed this afternoon, though no details of the price were revealed.

The buyer apparently specialises in turning around companies with revenues of $3m to $30m, which doesn't say too much for the state of Bebo.

Still, it's AOL that is taking a bath on the deal. The journal, ahead of the official announcement, quoted one source familiar with the negotiations who said AOL's price was "an exceptionally uninspiring number" with almost total "value destruction".

Of course, if anyone knows about almost total value destruction it's AOL, the firm that effectively took over Time Warner at the height of the dot com craze. The combined firm then spent the best part of the next decade trying to shed the AOL business.

The Bebo deal is just the latest embarrassing offload for AOL. It had sealed a deal to sell its ICQ instant messaging service to a Russian tech firm, but it appears that the US authorities are looking into the deal, as they like using the service to keep tabs on cybercriminals. ®

Beginner's guide to SSL certificates

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.