Bebo – Why AOL closed Bebo

AOL confirmed that it is not interested in maintaining its social networking site Bebo

AOL bought the site more than two years ago for $850 million, but is now aiming to streamline its business since Time Warner spun it off last year.

AOL closed Bebo

‘It is clear that social networking is a space with heavy competition,’ said the memo from Jon Brod, executive vice president of AOL Ventures.

He said Bebo had been declining and would need significant investment in order to compete with rivals such as Facebook and MySpace.

The memo said AOL was not in a position to provide further funding and support to Bebo at the moment. Bebo has been a leading social networking site in Britain, Ireland, New Zealand and other countries, but has been steadily losing ground to Facebook and MySpace.