It has been revealed that the flailing social network Bebo is set to be shut down or sold off by its owners AOL.
It was just two years ago that AOL bought the social network for a reported $850 million. However, an internal email from the company’s start-up acquisition and investment unit, AOL Ventures state that Bebo is in dire need of “significant investment” for it to survive, a sum that the once mighty AOL can no longer afford.
The email said: “Bebo, unfortunately, is a business that has been declining and, as a result, would require significant investment in order to compete in the competitive social networking space. AOL is not in a position at this time to further fund and support Bebo in pursuing a turnaround in social networking.”
Bebo, once the most popular social networking site in the UK and Ireland felt its popularity slip to the likes of Myspace and the meteoric rise of Facebook. With roughly 5 million users, Bebo has been completely overshadowed by Facebook, who now command a loyal user base of over 210 million.