AOL Admits Bebo To Be Sold Or Shut Down; Memo Sets May Target For Decision

AOL-Bebo acquisition - Joanna Shields, Ron Grant, Randy Falco

AOL (NYSE: AOL) told employees today that it may sell or shut down social network Bebo this year after deciding it would take too much additional investment to make keeping it worthwhile. Here’s the memo from AOL Ventures EVP Jon Brod…

“The strategy we set in May 2009 leverages our core strengths and scale in quality content, premium advertising and consumer applications, positioning us for the next phase of growth of the Internet. As we evaluate our portfolio of brands against our strategy, it is clear that social networking is a space with heavy competition, and where scale defines success. 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.

“AOL is committed to working quickly to determine if there are any interested parties for Bebo and the company

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