AOL is set to cut its losses on Bebo, admitting it will sell or, more likey, shut the failing the internet social network it purchased for close to $850 million in 2008.
AOL â€“ whose merger with Time Warner is regarded as the worst media deal in history â€“ bought bebo hoping to redefine its future as its business cratered as users deserted to free ISPs. AOL has now been spun-off from TW and is shedding loss makers.
“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 said in a statement.
Joanna Shields, the former Google exec who as bebo chief did a stellar job of selling it to AOL, has just joined facebook as VP EMEA.