AOL Buys Bebo for $850m

jammin - March 13, 2008 08:45AM in Internet

In the US, Bebo only trails the big two players when it comes to social networking sites (those of course, being Myspace and Facebook). Bebo clocks in at a respectable 40 million members worldwide, which may make the $850m pricetag seem on the small side. I don't know when $850m can ever be said to be small, but when you consider Microsoft paid $240m for 1.6% of Facebook last year and that News Corp. now think Myspace may be worth $15bn then it does sound like it may be a good deal. AOL will be putting down the $850m (£417m) in cash, though presumably not by driving a truck full of bills to Bebo's front door. Now AOL already has a social networking site of sorts in AIM Pages (profiles tied to its instant messaging app), but I guess it wanted a more established slice of the pie.