AOL acquiring Bebo for $850 million

AOL has announced that they are paying around $850 million in cash to acquire social media network Bebo.

Bebo is one of the most popular social networking services in the European market with a user base of more than 40 million members.

The company has around 100 employees operating in offices in the U.K., San Francisco and Austin, Texas.

Randy Falco, chairman and chief executive of AOL spoke about this acquisition deal: “Bebo is the perfect complement to AOL’s personal communications network and puts us in a leading position in social media.”

With this, Google has Orkut, Yahoo has Yahoo 360, Microsoft has a minor stake in Facebook and News Corp has MySpace.

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