Bebo, a social networking had been falling constantly low in business since last few months. In order to compete equally with the other social networking sites it requires a considerable portion of investment but the AOL is not in a position currently to fund this site.
There is a great question surrounding the issues of the shut down of Bebo, which is a social networking site. The AOL is wondering whether to sell or shut down this social site which was acquired for 850$ million.
In 2008, AOL scooped up this social media site. At that time, this internet company was owned by Time Warner Inc. this deal came when AOL had taken attempts to transform itself from a subscription based service. There was a kind of bet regarding the discussion as to whether the consumers would use this site for navigating their website.
A question had already come up regarding the issue that AOL has overpaid for purchasing the Bebo. The Chief executive of Time Warner claimed that in that year Bebo was in fact one of the most risky investment made by the company.
AOL claimed that by the end of this May perhaps the fate of Bebo would be decided. This major move actually comes out after four months when both AOL and Time Warner got separated. They had already considered this to be a declining asset and it is really a sunk cost at this point of time.