The kids social network which sold for $850m just a few years ago has been sold at auction by parent company AOL for just $1m. That is a huge writedown showing that the owners felt unable to do anything to return the fortunes of the beleaguered social network.
The social network Bebo was sold to AOL in 2008 for $850m but then was sold two years later for $10m but Criteron the new owners of Bebo has numerous issues and could get the site back on track. AOL is blamed for much of the value destruction between 2008 and 2010 and indeed took most of the loss – nearly a billion dollars in loss if you squint or around $840 million loss.
Sold to Original founder Michael Birch.
Now sold to the original founder and wife, the team hope to be able to rejuvenate the site, inject some fun back into the teen social network. In fact it may be a good time because many are tired of Facebook – the most well known social network and other sites such as Twitter and Google+ have continued their upwards growth.
Whats-more Michael Birch via his incubator Monkey Inferno are not short of a few pennies to inject some love back into the software that was once so popular to the teen market specially in the UK.