$850 million white elephant? aka Bebo

Some of these big firms have more money than sense!!!

Internet company AOL has announced plans to sell or shut down the social networking site Bebo.

The company said it was unable to provide the "significant investment" Bebo needed to compete with its social networking rivals.

The news comes just two years after AOL bought the site for $850m (£417m at the time).

A strategic evaluation of the company is expected to be completed by the end of May.

Buyers will be sought for the company, but analysts expect the selling price to be significantly lower than the price paid by AOL.

Bebo has been struggling against more popular rivals such as Facebook, AOL 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," Jon Brod of AOL Ventures told employees in an e-mail.

"AOL is committed to working quickly to determine if there are any interested parties for Bebo."

Full story:
BBC News - AOL plans to sell or shut down Bebo

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