AOL to sell social network site Bebo
Friday 18 June 2010
AOL will sell its Bebo social network site to private investment firm Criterion Capital Partners for an undisclosed sum, as it tries to restructure its business and deal with declining revenue.
Thursday's announcement comes as AOL has been trying to streamline operations since being spun off from Time Warner Inc last year. It has been struggling with a declining Internet access business and weak advertising revenue.
In April, AOL said it planned to either sell or close down Bebo, bought more than two years ago for $850 million (£573 million).
The Wall Street Journal previously reported that the Bebo sale would probably be at a "small fraction" of what AOL originally paid.
AOL said the deal will give it a meaningful tax deduction, and forecast it would record a deferred tax asset and benefit in a range of $275 million (£185 million) to $325 million (£219 million) for the second quarter.
Bebo, founded in San Francisco, gained popularity in the United Kingdom but never gained traction in the United States and has lately also been losing users to competitors' sites like Facebook and Twitter.
AOL in April described Bebo as a business in decline and requiring significant investment which it was not in a position to provide.
Criterion Capital Partners' managing partner Adam Levin, who led the acquisition, said on Thursday that Bebo was an attractive media site due to its "young, highly active user base, revenue history, presence in countries throughout the world and solid technical infrastructure."
Life & Style blogs
The best swim shorts for men: Bag yourself the perfect pair and make a splash this summer
High-oestrogen contraceptive pills could raise breast cancer risk by 50%, study suggests
The best swim shorts for men
National Orgasm Day: Don't get caught up on climaxing
Ebola outbreak: Why has a disease that's only ever killed 2,000 people captivated the darkest side of our imagination?
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- 1 Mystery of the Siberian holes at the end of the world 'solved': Scientists offer explanation
- 2 Pope Francis issues top 10 tips for happiness
- 3 Disney heiress Abigail disowns her share of family profits in West Bank company
- 4 Israel's propaganda machine is finally starting to misfire
- 5 Sean Hannity reacts to Russell Brand's Israel-Gaza criticism: 'You're a dumb actor known for your failed marriage to Katy Perry'
- < Previous
- Next >
iJobs Gadgets & Tech
£40000 per annum: Ashdown Group: A successful IT service provider that has bee...
£18000 - £25000 per annum + Commission: SThree: Computer Futures are currently...
£18000 - £27000 per annum + Commission: SThree: Sales - Trainee Recruitment Co...
£18000 - £23000 per annum + Commission: SThree: Progressive Recruitment are cu...