AOL SELLS BEBO BACK TO FOUNDERS FOR $1 MILLION – Social networking certainly is the hot property to own on the internet; well that is if you can get it right.
When you look at the meteoric rise of Facebook and Twitter there is little denying that people love to be social and share what they are doing, their views and everything in between.
In 2008 the founders of Bedo, Michael and Xochi Birch, decided that the $850 million offer of their social network from AOL was too good to turn down and therefore signed the contract.
In a period of just five years and with complete mismanagement, the Bebo social network saw a heavy decline in users with its 40 million register users abandoning the site in droves.
Yesterday Michael and Xochi Birch announced that they had reacquired Bebo from AOL for the princely sum of just $1 million.
Bebo is of course now worthless. It doesn’t have the millions of users it once boasted and the business is hemorrhaging cash. However with a vast fortune in the bank the couple felt it would be ‘fun’ to try and revive Bebo and are not overly concern if it fails completely.
The name Bebo was derived from ‘Blog Early, Blog Often, and was founded in 2005. At its peak it had just over 40 million users worldwide and was a successful internet company – that is until AOL brought it.
At the time of the purchase many speculated that Bebo would become the premier social network due to AOL having the financial muscle to develop and promote it further; unfortunately AOL’s plans were quickly laid to rest with the rise of Facebook and Twitter.
The mishandling of Bebo and the outrageous price AOL paid for it quickly got the then CEO Randy Falco into hot water with its shareholder and was thereafter fired.
After attempting a revival that failed Bebo filed for bankruptcy and Michael and Xochi stepped in and made an offer that was accepted.
What will Bebo’s fate be? That’s anyone’s guess but if it does fail and is finally laid to rest it is unlikely Michael or Xochi will feel the pinch.
Do you use Bebo and if so what do you think of the social network? Please leave your comments below.