Industry Observations
Bebo has about 40 million users, at $850 million that's what? About $25 per user? Not bad, I'd say.
The demographic is a tough to get, youth crowd.
Bebo has been at it for a few years and over the last few months they have been in talks for a purchase play between AOL and BEBO.
According to Kenneth Li and Kate Holton in their writeup for yahoo news:
The purchase comes amid a wholesale transformation of AOL from a dial-up Internet provider to an online advertising powerhouse.
It has spent nearly $1 billion to create one of the biggest third-party display ad units, Platform-A. AOL aims to gird against the prospect of bigger rivals as Microsoft Corp pursues a deal to buy Yahoo Inc and following Google Inc's purchase of DoubleClick.
"This is a tremendous acquisition and one I think is game-changing for AOL," AOL Chairman and CEO Randy Falco said on a conference call.
NETWORKING
"Bebo will be the cornerstone of our strategy to transform online experiences for advertisers, media companies and consumers," Falco said.