AOL to sell Bebo for '$10m': reports

Diversifying ISP paid $850m for social network two years ago.
Tim Armstrong, chairman and CEO, AOL.
Tim Armstrong, chairman and CEO, AOL.

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AOL is reportedly close to selling social network Bebo for just US $10m, just two years after paying $850m for the service.

It was anticipated that AOL would shut down the service and make a tax saving of $380m in the process.

However, technology investment newswire Venture Beat claims that a fee of $10 million has been consistently mentioned. It also speculates that the decision to pass on the tax savings could be an indication that the company is priming itself for acquisition with the associated capital gains write-off from the sale being passed to a potential acquirer.

AOL chairman and CEO Tim Armstrong has been leading the company on a content and application based path since he took the top job at the firm telling the Abu Dhabi Media Summit in April that AOL was “maniacally focused on content”.

Yahoo! and Microsoft have been touted as potential buyers for AOL in the past.

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