It’s no secret that Facebook well and truly dominate the social networking world, in days gone by Myspace was the site on everyone’s lips now almost 10 years on and it’s Facebook on everyone’s lips only in much higher numbers. A site like Bebo have now become just another one of those social networking sites that no one bothers with and AOL knowing full well that Bebo will never beat Facebook in popularity plan to sell the social networking site that cost them £570million to acquire.
It looks like AOL plan to sell the site for just £7million to Criterion Capital Partners, a company that specialize in rejuvenating failed businesses. It is unsure what’s really going on but it looks like a deal between the 2 companies will be reached by the end of this week.
Back in April AOL announced that it planned to sell Bebo or simply close it down, Jon Brod, executive vice-president of AOL Ventures, stated “AOL is not in a position at this time to further fund and support Bebo in pursuing a turnaround in social networking.”
Criterion Capital Partners’ managing partner Adam Levin, had this to say 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.”
AOL has revealed that the deal will give it a meaningful tax deduction, and forecast that it would record a deferred tax asset and benefit in a range of £185 million to £219 million for the second quarter.
Let’s keep our eyes peeled!
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Tags: bebo, facebook, social networking, twitter