Summary:

– Spencer Wang, Bear Stearns: Cash flow at Bebo is likely to be pretty light, so the buy will cause some dilution at AOL (NYSE: TWX), alt…

image imageSpencer Wang, Bear Stearns: Cash flow at Bebo is likely to be pretty light, so the buy will cause some dilution at AOL (NYSE: TWX), although it will not have a meaningful impact on Time Warner’s bottom line. The deal gives the company a “beach head” in the social networking space, which, when combined with other AOL assets (AIM on the social networking side, Platform A on the ad side), will drive strategic value. Other than that, the main value is in helping AOL grow internationally.

Alex Burmaster, European internet analyst, Nielsen Online:

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