AOL: Back in the game
E-commerce
17 March 2008
AOL has bought social networking site, Bebo for $850 million (£425 million) and hopes to expand its online advertising operation.
The company will now have access to approximately 80 million users, 40 million of them from Bebo. The social media site is the third most popular in the US but tops the charts in Ireland and New Zealand.
"Bebo is the perfect complement to AOL's personal communications network and puts us in a leading position in social media," said Randy Falco, chairman.
Mr Falco explained it was the site's "substantial and fast-growing worldwide user-base" and its "vision of a of a truly social web" which attracted AOL.
Key to its interest is the possibility of getting advertisers involved in the site's networks. Mr Falco said he would offer advertisers even greater reach and marketers "significant insights into the desires and needs of consumers".
Analyst eMarketer has predicted by 2011 global social networking will attract $4.1 billion (£2.1 billion) in advertising spending.
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