3 July 2013 | Category: Online
The social network which was bought by AOL in 2008 for $850 has been bought back by its founder for $1 million after years of decline.
Michael Birch tweeted today: "We just bought Bebo back for $1m. Can we actually re-invent it?". Despite the enthusiasm, Bebo faces the challenge of breaking back into a market dominated by Facebook.
Michael Birch set up Bebo with his wife Xochi in January 2005. It quickly became very popular with teenagers particularly in the UK and was bought by AOL who recognized it's rapid growth and emerging market.
However, since the buyout Bebo struggled in the face of competition from Facebook and Twitter. It also lacked a clear strategy, faced management issues and funding.
In 2010, AOL announced that it planned to close down the website. In the end they sold it to Criterion Capital Partners for $10m who subsequently struggled to resurrect the website.