AOL acquired Bebo, a social media network for $850 million cash. Bebo, the ninth popular social networking site in the world and ranked third in U.S, founded by Michael Birch of U.K in California. There were rumors that AOL was trying to buy Bebo, and was said that they were quoting one Billion dollar price. The deal was clinched as Bebo is growing leaps and bounds and U.S subscribers have increased considerably last year. Bebo is said to have a huge customer base in U. K and it tries hard to improve in The U.S. This move will be one of the main success story of the growing internet Business for U.K.
AOL’s move in buying Bebo makes a clear indication that the company is making a mark to move globally as Bebo has a strong youth subscribers in U.K, Ireland and New Zealand. With Bebo coming into the AOL fold, the company has a huge expansion plans to expand it outside U.S. Bebo, also have similar expansion plans as their services will be expanded into Italy, Spain, the Netherlands, Germany and France.
After acquiring Bebo AOL chairman and CEO Randy Falco in a statement “Bebo is the perfect complement to AOL’s personal communications Network and puts us in a leading position in social media”. The president of Bebo has said they have real opportunity to discover Bebo in the U.S now.
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