Back in 2008, AOL’s $850 million purchase of the social networking site Bebo seemed like a good idea – it was huge in Britain and Australia, and part of AOL’s plan to gain “new users and advertisers.”

“AOL Plans to Sell or Shut Bebo Social Networking Site” cites May 31 as the date that AOL will decide whether to shut down or sell the site. In today’s market, AOL must continue to revise its business strategy – gone are the days of selling expensive internet plans – and social media seems to be the best option. But Bebo “has not been able to retain an audience” said a social media researcher in the article, with a 45% dip in February traffic compared to 2009. Facebook, on the other hand, had 68% more visitors. Competition like that makes the choice pretty clear for AOL.

The SSN Take: AOL should still investigate social media, but ditch Bebo.

Samuel Hartman, April 22, 2010

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