13 March 2008
Bebo, one of the world’s largest social networks, is to be bought by AOL for £417 million.
The network has more than 40 million members worldwide. It is currently ranked number one in Ireland and New Zealand and number three in the US.
Randy Falco, chairman and chief executive of AOL, said:
Bebo is the perfect complement to AOL's personal communications network and puts us in a leading position in social media.
AOL’s strategy is to move from a subscription-driven business to becoming a public website that generates income from building traffic and selling advertising, similar to Yahoo and Microsoft’s MSN. This acquisition forms part of that strategy.
The move is the latest in a series of high profile deals as media companies look to expand their reach for advertisers.
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