“You would have to be stupid. You would have to trip to not succeed at this at some point.”
Back when AOL bought Bebo for $850 million, I was already speculating that the social network had slipped from its valuation high of $1.5 billion. Now it appears that the social network has lost users–down from 22 million a month to 14.6 million–and with it, it’s value to AOL.
What’s interesting is the predicament facing AOL. Due to some complex tax laws, it may actually make better financial sense for AOL to just shut Bebo down.