In a massive case of “what were they thinking” AOL bought social networking site Bebo for $850 million; and in a case of “what are they thinking now,” the company has sold it, reportedly, for around $10 million to a hedge fund: Criterion Capital Partners.
It was stupid for AOL to pay that much in the first place and maybe naive to think that it could take on Facebook. But now, on the other end, it’s probably misguided to get rid of the site for that little.
I don’t know what the headcount and other costs associated with Bebo are. But Facebook’s privacy flap has created an opening for others to exploit. Alternatively the site could be reinvented and/or the platform could be used in various ways (a la Yahoo-Facebook) across AOL properties perhaps.
Bebo could reposition as a media-sharing site for parents or families as Multiply has tried to do. Or it could be reinvented as a mobile service. The point is there are probably several ways, now that AOL wrote off its value, to use Bebo.
I doubt the hedge fund will do much with the site. A year or so from now they’ll flip it or be compelled to shutter it entirely.