AOL snaps up Bebo

13 March 2008

Internet service provider AOL has bought the Bebo social network.

The deal will see AOL pay $850 million to acquire Bebo outright. The network, particularly popular with teenagers, has around 40 million users.

"Bebo is the perfect complement to AOL's personal communications network and puts us in a leading position in social media," said AOL chairman Randy Falco. "This positions us to offer advertisers even greater reach and marketers significant insights into the desires and needs of consumers."

AOL said that it planned to integrate its AIM and ICQ instant messaging programs with the social network, building much of its strategy around the synchronous communication the services provide.

However, writing in the Guardian technology blog, Charles Arthur wondered: "has AOL bought just after the wave has broken?"

"News Corp's acquisition of MySpace initially looked like a mistake, but now seems sensible," he added. "Do AOL and Bebo make a match made in heaven... or hell?"

Rumours that Bebo might be up for sale had been circulating for some time, with TechCrunch pointing out that it had "told you so" a month ago.

Category: Social media