AOL Buys Bebo for Bargain $850m
| Author | Gordon Kelly |
| Published | 13th Mar 2008 |
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TrustedReviews NewslettersI told you Microsoft overpaid for Facebook...
Showing just how to get a bargain today is AOL which has revealed an $850m (£417m) agreement to buy kiddie social networking site (come on, it is) Bebo. Randy Falco, AOL boss, said "Bebo is the perfect complement to AOL's personal communications network and puts us in a leading position in social media." Well, it is at that price...
By comparison, News Corp bought MySpace for $580m in 2005 and now considers the site to be worth in excess of $15bn. Similarly, Microsoft bought a tiny 1.6 per cent stake in Facebook for a crazy $240m in October - a price which also values the site at $15bn. Interestingly, AOL claims Bebo now has 40m+ members who view 78 pages per day on average (!), Facebook has 64m users and MySpace well over 100m. Yes, that $850m doesn't add up.
Rather oddly, Time Warner makes the purchase at a time when it is currently examining the possibility of selling off AOL, but I suspect it saw the opportunity as too good to be true.
Gutted Microsoft. Gutted...
Link:
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