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Thread: AOL Prepares to Kill Bebo

  1. AOL Prepares to Kill Bebo

    AOL Prepares to Shut Down Bebo
    “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 is not in a position at this time to further fund and support Bebo in pursuing a turnaround in social networking.”
    The British-born company is in the process of scouting out any potential buyers for the beleaguered social network, but The Telegraph understands that Stephane Panier, global head of Bebo, has been in conversations with both Brod and AOL’s chief executive, Tim Armstrong over the last six months about abandoning the network altogether rather than selling it.
    A source close to Bebo’s UK operations said they had been expecting the announcement as user figures had dropped from nearly 40 million per month worldwide, to just 12 million as of February 2010.
    AOL, which spun off from Time Warner last December, bought the site for $850 million (£550 million) in 2008 from British-born Michael Birch and his partner Xochi. Joanna Shields, the then chief executive of Bebo, who has recently been hired by Facebook to head up its European sales business, engineered the deal and let AOL last May. After the sale went through, Jeff Bewkes, Time Warner’s chief executive admitted that the company had overpaid.

    From $850M in 2008 to $0 in 2010. Wowza... AOL makes me feel smart.
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  2. #2
    Join Date
    May 2009
    New York
    AOL still has revenue from 6.9 million people subscribed for online access. They also have some traffic with 109 million uniques per month from US users.

    I don't understand why they bought Bebo other than they felt they needed to do something. Usually that's a recipe for losing more money.

  3. #3
    Join Date
    Jan 2009
    Philadelphia, Pennsylvania
    Now that they're shutting down, it's quite funny to look at their 'Jobs' page:
    Jobs at Bebo

    But anyway, hindsight is always 20/20. They probably saw Bebo and figured they could make a lot of great changes and revolutionize the social networking field. Then, people would flock to Bebo and their profit would be vast. Obviously, they didn't plan it out very well... or rather, at all.

    I always saw Bebo as useless. The runt of the social networking litter.

    Personally, I don't see much value in AOL at all. I'm surprised people still even use them for online access.
    The only AOL product I use is AOL Instant Messenger. Do they even have anything else worthwhile?

    US AOL Subscribers (in Millions)

    They've also been getting rid of everything...

    AOL (Time Warner) has sold a number of its sub-companies in Europe. AOL Europe has six million users, but its subscription base had been steadily declining. In 2005, 287,000 European AOL online users migrated to other service providers.[57] In September 2006, AOL Germany's ISP business (AOL Deutschland GmbH & Co. KG) was sold for $863m (€675m) to Telecom Italia.[58] AOL's German web portal (AOL Deutschland), however, is now operated by then newly founded AOL Deutschland Medien GmbH which still is a subsidiary of Time Warner. Today, AOL Deutschland offers virtually all free services of (see below) in German versions as well as some own products, such as an AOL VISA card.[1](German) In October 2006, AOL UK's ISP business was sold for $688m (£370m) to Carphone Warehouse.
    Is the ultimate demise of AOL imminent?

    P.S. Take a look at this:

  4. #4
    Join Date
    May 2009
    New York
    The former chief executive of Bebo was hired by Facebook to head up its European sales business. That should tell you something right there.

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