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.