AOL says it will sell or shut down social networking site Bebo in 2010, just 2 years after buying it for $580 million. Bebo has lost 45% of its unique visitors in the last year as Facebook, Twitter and other platforms have gained popularity and AOL is not willing to spend additional funds into a possible turnaround.
"It is clear that social networking is a space with heavy competition, and where scale defines success. 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," wrote AOL Ventures EVP Jon Brod in a memo obtained by paidContent. "AOL is not in a position at this time to further fund and support Bebo in pursuing a turnaround in social networking."