AOL snaps up Bebo for $850 million

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AOL has just announced that it plans to acquire social networking giant Bebo for $850 million.

In doing so, AOL will also gain Bebo's 40 million-strong worldwide membership which, coupled with its AIM and ICQ personal communications network, means it will boast a network of around 80 million unique users.

More specifically, AOL is likely to gain from Bebo's country-specific presence. It is one of the leading players in its field here in the UK, is ranked number one in Ireland and New Zealand and is the number three in the US.

"Bebo is the perfect complement to AOL's personal communications network and puts us in a leading position in social media," said Randy Falco, chairman and chief executive of AOL. "What drew us to Bebo was its substantial and fast-growing worldwide user-base, its vision of a truly social web, and the monetisation opportunities that leverage Platform-A across our combined global audience. This positions us to offer advertisers even greater reach and marketers significant insights into the desires and needs of consumers."

Bebo's president Joanna Shields, who will continue to run the company and will report to AOL's chief operating officer Ron Grant, added: "AOL understands the shifting dynamics of the web and has clearly demonstrated its commitment to leveraging the ever-increasing power of social networks."

"With one and the same vision in this area, it was a natural progression for Bebo to join AOL, and we look forward to working together to continue to expand the online social experience globally."

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