Rumour mill: AOL to shut down Bebo
AOL will shut down or sell Bebo, the social media network it paid $850m for in 2008, by the end of the year, with sources close to Bebo saying that the “shut down” option is more likely, according to the Silicon Alley Insider.
An AOL spokesperson replied to the rumours, saying: “There is a very active and structured process being run – both reacting to queries that have come in and reaching out to potential players.
“To be fair, it probably is 75% reacting to queries and 25% reachout. But I don’t think it’s fair to say [AOL is not] trying.”
The source said AOL is only just now going through the processes associated with potential buyouts, like Bebo did months in advance before the AOL acquisition.
Last month, TechCrunch reported that AOL could potentially save $380m a year in taxes by shutting down Bebo, which dropped from 22m monthly unique visitors when it was acquired to just 14.6m today.
Silicon Alley Insider’s source said employees accept Bebo’s eventual fate: “Given the way AOL has totally ignored Bebo for the past 6+ months, no one was surprised by the announcement. Most [employees] are relieved, as they can now hunt for new opportunities without any guilt for thinking to leave a project they invested so much time and effort into.”
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