June 26, 2008
AOL Seals Bebo Deal for Pounds 419m
AOL has acquired social networking site Bebo for $850m (Pounds 419m), marking the Time Warner company's latest attempt to redefine itself as an ad-funded business. Randy Falco, chief executive of AOL, claims that the acquisition will help his company become a 'social media powerhouse' capable of competing against rivals such as Facebook and MySpace for digital adspend.According to comScore, Bebo is the second-most popular social networking site in the UK, with 11.4m unique monthly users, compared with 12.8m for Facebook, and 8.8m for MySpace.
Time Warner has invested $2bn (Pounds lbn) in scrapping AOL's subscription model and acquiring behavioural targeting and contextual advertising firms to sit alongside its display advertising networkAdvertising.com
Copyright Haymarket Business Publications Ltd. Mar 19, 2008
(c) 2008 Marketing. Provided by ProQuest Information and Learning. All rights Reserved.