AOL, the US based internet company, has announced that it no longer has the resources to keep supporting the development of online social network Bebo and might start looking for buyers after its May 2010 review.
Bebo, which was acquired by AOL for USD 850 million in 2008, was once the most popular social network in the UK with over 10 million users and 40 million users worldwide. With the arrival of Facebook in the social networking scene, Bebo slowly started losing users and failed to maintain the existing ones.
A report on the Press Association disclosed that the decision to sell-off the ailing social network was announced by the company management during an employer meeting, in which, AOL said that Bebo invited 'significant investment', which was not possible in the current situation.
Despite having a decent user base in the UK, Bebo has failed to accumulate the desired number of American users, which are hung-over on Facebook.
AOL, which was once a part of the Time Warner group, told its employees in an email that “Bebo, unfortunately, is a business that has been declining and, as a result, would require significant investment in order to compete in the competitive social networking space.”