As you’ve probably heard AOL today announced the acquisition of social networking site Bebo for $850 million.
Sure, we could discuss how this will help AOL turn AIM and ICQ into an uber-social network. We could also discuss how Yahoo and Google let this slip from their grasp. But, here’s the question I’d like to ask…
Does this prove that social networks are approaching their own “bubble?”
For the past year, we’ve heard rumors that Bebo is up for sale. Valuations have typically placed the social network in the $1 billion to $1.5 billion price range. Now, after weeks of speculation that internet users are tiring of social networks, Bebo sells for just $850 million–almost half the top-end valuation thrown around last year.