AOL hives off Bebo to Criterion Capital Partners
17 Jun 2010
Internet services and media company AOL today sold its global social media networking site Bebo to private equity firm and turnaround specialist Criterion Capital Partners (CCP), for an undisclosed sum.
Although both companies did not disclose the deal price, analysts surmise that AOL has sold Bebo for just a fraction of the $850 million it paid in 2008.
Early this year, AOL had said that it would offload Bebo or close it down as it did not have the necessary funds to prop it up amidst its declining business.
In May 2008, AOL, which was then owned by Time Warner had acquired Bebo for $850 million in cash hoping to place itself in a premier position in the fast growing world of social media with a network of approximately 80 million unique users and membership of 40 million at that time. (See: Media giant AOL grabs networking site Bebo for $850 million)
Analysts had questioned the deal at that time and had said that it was the riskiest business to enter to in the dotcom era. They had even said that AOL had overpaid for the acquisition.
Although Bebo was one of the leading social networking sites in the UK, ranked number one in Ireland and New Zealand, it never became popular in the US and other parts of the world. Bebo also operates in Australia, Canada, Poland, France, Germany, Italy, Spain, India, Pakistan and the Netherlands.
