AOL an internet arm of Time Warner Inc. decided to buy Bebo a social media network with a total members of more than 40 million for $850 million in cash. It transformed itself from a business to a public website.
Bebo is known as one of the
largest social networks in
Social networking is useful this time since it has grown popular and has gotten insured fast return of investment. So, companies like AOL want to buy such networks. Example for a success in buying social network is New Corp., the owner of Fox Television wherein buy MySpace for $580 million in year 2005 but estimated the value now of the network to be more than $15 billion (quite big right for just 3 years of owning it). Another example is Facebook which was bought by Microsoft last year where it is just $240 million compare to its $15 billion value now.
Buying Bebo is a good idea of AOL; surely it will have a good impact on their company.
