Bebo, once a darling of the online social networks, is being shut down by AOL - only two years after it was bought for nearly $1 billion.
At its peak, Bebo was attracting 40 million visitors per month. As of February this year, that number had fallen to 12 million.
The company's 40 employees were told yesterday that AOL was withdrawing its support. "Bebo... is a business that has been declining and, as a result, would require significant investment in order to compete in the competitive social networking space," said Jon Brod, head of the acquisition and investment unit at AOL.
The British born network, known for its popularity with younger people, has faced increasing competition from rivals like Twitter and Facebook. Indeed, Joanna Shields, Bebo's former CEO has been snapped up to head Facebook's European sales business.
AOL is presently looking for potential buyers of the struggling social network, although the Telegraph reports that the company is considering dumping it altogether.
The demise of Bebo - and the long-distant toppling of Friends Reunited from pole position among the social networks - are reminders that online fashions change. It's important to keep abreast if your business is online, whether by fine tuning your digital direct marketing techniques or making sure your online PR is relevant.
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