Search:  

 
 
   News
newer
story category AOL Buys Bebo For $850 Million
Subscribers leaving? Ad business struggling? Time for an acquisition!
(old news - 09:34AM Thursday Mar 13 2008)
tags: business · content · Oddities · America Online
It seems like just yesterday (because it was) that Time Warner execs were talking about either selling AOL or merging it with another company. Today finds AOL, still undergoing its painful metamorphosis from broadband ISP to advertising giant, acquiring social networking startup Bebo for a cool $850 million. The former ISP is still bleeding millions of dial-up subscribers per month, and has struggled in the advertising game (3 major ad execs have quit over the last month). A billion dollar social networking experiment? Yeah, that'll fix it.

Related:
  1. Town Blocks Comcast On-Demand
  2. Using AdBlock Plus Is Stealing
  3. Utah Wants Wholesome Seal Of Approval For ISPs
  4. U2 Manager: Crazy ISP Hippies Should Pay Us
  5. Airline Broadband Fuels In-Flight Porn Debate
  6. Scott Cleland: Google Using 21x The Bandwidth They Pay For
  7. Amazon Pirate Firefox Plugin Was Art Project
  8. Taxing ISPs to Prop Up Failing Newspapers?
Forums » AOL Buys Bebo For $850 Million
view: topics flat text 
Post a:

supergirl

join:2007-03-20
Pensacola, FL

$850 million for what?

What is BeBo?

rit56

join:2000-12-01
New York, NY

edit:
March 13th, @03:19PM

Re: $850 million for what?

what?

spewak
Kiss It, Kiss It Real Good
Premium
join:2001-08-07
Elk Grove, CA

A day late

and a "social networking startup" short! Oh how the mighty have fallen!
--
The weekend is here, grab a can of beer!

supergirl

join:2007-03-20
Pensacola, FL
·Cox VOIP
·Skype
·Cox HSI
·AT&T Southeast
·magicjack.com

Re: A day late

This "testimonial" says it all:

"Bebo Is The Best Social Networking System In The World "
Samy, Kenya, Mar 2008

I guess Samy never heard of MySpace and Facebook.

I looked at BeBo. UGLEEEE!!!! Looks like a teeny-bopper crowd.
--
Saving the world keeps me busy. However, I find Earth very primitive from my home planet of Krypton.
-Supergirl

Subaru
1-3-2-4
Premium
join:2001-05-31
Greenwich, CT
clubs:

Re: A day late

crap.. when is AOL going to die?? when i looked at the title real quick I thought they sold AOL...
jc100

join:2002-04-10
·RoadRunner Cable

Re: A day late

AOl still has money to piss away from it's parent company. My honest opinion, AOL made a major mistake by going to a free service. The minute that happened, my mother can canceled the account I had with them for nearly 10 years. I had set her up under my account and she still utilized the dialup. She didn't need anything more. However, when it became free, she got broadband and just used the tcp / ip aol as she wanted to maintain her email. Long story short, that was a major mistake as I'm sure that contributed to people jumping ship. If I were an exec @ AOL, I would have set dialup to 10 dollars a month, and Bring your own broadband (BYOB) for 5. Next, I would have utilized Time Warner's name and Company to offer exclusive content to AOL subscribers. This might include a section where BYOB and possibly dialup users (in lower quality) could have streamed shows and privileged content. Hence, making it worth the BYOB person to pay a few to stick around, even if nominal.

Subaru
1-3-2-4
Premium
join:2001-05-31
Greenwich, CT
clubs:
·Packet8
·Verizon Online DSL

Re: A day late

said by jc100 See Profile :

AOl still has money to piss away from it's parent company. My honest opinion, AOL made a major mistake by going to a free service. The minute that happened, my mother can canceled the account I had with them for nearly 10 years. I had set her up under my account and she still utilized the dialup. She didn't need anything more. However, when it became free, she got broadband and just used the tcp / ip aol as she wanted to maintain her email. Long story short, that was a major mistake as I'm sure that contributed to people jumping ship. If I were an exec @ AOL, I would have set dialup to 10 dollars a month, and Bring your own broadband (BYOB) for 5. Next, I would have utilized Time Warner's name and Company to offer exclusive content to AOL subscribers. This might include a section where BYOB and possibly dialup users (in lower quality) could have streamed shows and privileged content. Hence, making it worth the BYOB person to pay a few to stick around, even if nominal.
AOL is free now? I thought they charged a monthly fee still...
--
It's NOT Ni-kon It's NE-KON!




Check out my Gallery!
»/pics/dimaging/400265


jc100

join:2002-04-10
·RoadRunner Cable


edit:
March 13th, @10:28AM

Re: A day late

Dialup is like 24 dollars a month. They actually UPPED the price. Bring your own broadband is free. That's the add supported part of AOL. However, being MOST people have broadband, you just killed your revenue by going to that model. Their ad supported idea is sinking faster than the titanic. Instead of making money, they are failing to generate the revenue from ads they predicted.

Subaru
1-3-2-4
Premium
join:2001-05-31
Greenwich, CT
clubs:

Re: A day late

Ah I see.. last time used AOL was back in 2001 and that was the final time I used it.
jc100

join:2002-04-10
·RoadRunner Cable

Re: A day late

Unfortunately, AOL has some half assed execs. The big thing today is streaming video and movies. As I said, Time Warner is a major studio and partner. If AOL execs had any common sense, they would have utilized this to their benefit. As I said, setting dialup at 10 dollars a month is fair. That's NetZero's price. Also, setting BYOB to 5 means you get revenue still for people with their own connections. As stated above, the streaming video part and lower priced would have offset many of the losses AOL sees today. Unfortunately, they aren't thinking ahead. If I were them at this point, I would drop dialup to 10 and save face with the customers that are left. Their idea of buying social networking places is pissing money they simply don;t have. It would be better spent on advertising and revamping their service.

bigunk
Gort, Klattu Birada Nikto

join:2001-02-10
Santa Clarita, CA
·AT&T Yahoo

said by jc100 See Profile :

AOl still has money to piss away from it's parent company.
Correct me if I'm wrong, but didn't AOHold buy TW?

Drex
Beer..It's What's For Dinner
Premium
join:2000-02-24
La Place, LA

Social Networking Startup

I need to come up with a Social Networking Startup so I can be bought out for millions of dollars by a company that's going defunct.
--
I gave up drinking and eating bad food. And in 14 days, I had lost 2 weeks.

odreian615

join:2006-01-18
Chicago, IL

Bebo is hot in the UK and Europe

Only thing good about AOL is Engadget
Gilitar

join:2000-11-20
Mobile, AL

Too late, but....

AOL should have put their money in wireless if they wanted to survive.

RadioDoc
Sortofadog
Premium,ExMod 2000-03
join:2000-05-11
Chicago, IL
·AT&T Midwest

Re: Too late, but....

said by Gilitar See Profile :

AOL should have put their money in wireless if they wanted to survive.
Yeah. That's working really well for Earthlink...
--
Toolmaster of La Grange.
Edward1978

join:2007-07-23
De Soto, IL
·Verizon Online DSL

Re: Too late, but....

said by RadioDoc See Profile :

said by Gilitar See Profile :

AOL should have put their money in wireless if they wanted to survive.
Yeah. That's working really well for Earthlink...
I looked on Earthlink's site a few years back & the only wireless service listed was New Orleans. Wow thanks Earthlink 1 city. Those rural customers LOVE that dial-up.

Derspankster
Premium
join:2003-02-12
Marion, OH

TW is direction-less

They don't seem to be able to figure out how to spend their money. So, they just throw it away.
--
I thought I made a mistake once but I was wrong
expert007

join:2006-01-10
Buffalo, NY

Cash or Stock?

Thats probably $850 Million in restricted AOL stock, which will plummet long before Bebo's execs can exercise their options.

Pure speculation of course, I don't want to spend the time to prove that....
jc100

join:2002-04-10

Re: Cash or Stock?

Nothing like toilet paper to wipe your ass with. If Bebo execs were smart, they would have stuck a clause in there that those stocks can be liquidated. As soon as AOL gave them to me, I'd say here you go. Company is yours! SELLLLLLLLLLLLLLLLLLLLLL.
birdfeedr
Premium
join:2001-08-11
Warwick, RI
·Verizon FIOS

said by expert007 See Profile :

Thats probably $850 Million in restricted AOL stock, which will plummet long before Bebo's execs can exercise their options.

Pure speculation of course, I don't want to spend the time to prove that....
RTFA. "Under the terms of the agreement, AOL will acquire Bebo for $850 million in cash."

30 seconds. But you're busy.
expert007

join:2006-01-10
Buffalo, NY

Re: Cash or Stock?

Yep. I just spent your 30 seconds sucker. Ain't life grand?

AOL, Bebo and smartass comments really don't matter to me.

Cheese
Premium
join:2003-10-26
Naples, FL
clubs:

Re: Cash or Stock?

said by expert007 See Profile :

Yep. I just spent your 30 seconds sucker. Ain't life grand?

AOL, Bebo and smartass comments really don't matter to me.
Smartass? He was pointing out something that was clearly STATED in the article which you obviously didn't read
expert007

join:2006-01-10
Buffalo, NY

Re: Cash or Stock?

Oh geez. Read my OP and you'll see that I SAID that I didn't read it. Thats what speculation means. The consequences of what happens with Bebo or AOL really don't matter to me, so I didn't want to spend the time to check out the article.

Not everyone has all day long to delve into every article and issue that is posted here. And if you're wondering why I'm taking the time to elaborate here, its only because I'm chomping on a couple of tacos at the moment.

birdfeedr
Premium
join:2001-08-11
Warwick, RI
·Verizon FIOS

said by expert007 See Profile :

Yep. I just spent your 30 seconds sucker. Ain't life grand?

AOL, Bebo and smartass comments really don't matter to me.
I hope your 30 seconds was profitable. AOL and Bebo don't mean too much to me either.

And I'm not sure if it was the F in RTFA that made it a smartass comment. Sorry, drop the F. Does that help?

Or maybe it was the "But you're busy." I know a lot of people pop in here, catch up on the news, maybe fire off a comment. Lord knows, I'm in here for a couple of minutes at least 10 times a day. Lots of times I'm pretty busy too.

Hey, I know! You can start a forum called The Busy Club, and see how many join. Easy formula, with a link at the top to a current front page story, and multiple choices for remarks. At the end, just tally the numbers of As, Bs, Cs and Ds.

Never mind, my original comment was merely an expression of one of my peeves: Comments that are not based on anything in the article. They spawn further drivel.... oops, like this nonsense.

And it might be pure speculation, but tacos had nothing to do with replying to Cheese.
expert007

join:2006-01-10
Buffalo, NY

Re: Cash or Stock?

To answer your question, that particular 30 seconds was profitable. I lost my ass for the rest of the day

Actually, I thought the "F" stood for fine. Read the Fine article right??

And the taco's were done by the time I replied to Cheese. Cripes, were you watching me?

Have a good one!! No harm no foul.

hobgoblin
Sortof Agoblin
Premium
join:2001-11-25
Orchard Park, NY
clubs:

Re: Cash or Stock?

said by expert007 See Profile :

T

And the taco's were done by the time I replied to Cheese. Cripes, were you watching me?

You work in Taco Bell...oh no you are from Buffalo must be Mighty Taco.
--
"A foolish consistency is the hobgoblin of little minds."
- Ralph Waldo Emerson
expert007

join:2006-01-10
Buffalo, NY

Re: Cash or Stock?

Well, I don't work there....lol

But since I was driving by.....I could hear the voices in my head.........Mighty Taco.......Mighty Taco


Smith6612
Premium
join:2008-02-01
united state
·Verizon Online DSL
·FrontierNet Intern..
·Dish Network


edit:
March 13th, @04:18PM

Geez...

AOL has been free for a few years now. All you needed was a broadband connection. As for the dial-up? $24 a month is just unbelieveable for such a slow service. My DSL is a lot more reliable than dial-up, obviously faster, and doesn't require a client that bugs up your computer a lot (and AOL does really screw with your computer after a while, and their uninstallers sure do make a mess with leaving behind 200+ MB worth of files to reinstall AOL deep in the system), I'm glad I jumped ship from AOL dial-up 2 years ago to Verizon DSL.
SteveK
Premium
join:2001-11-12
Kensington, MD
·Verizon FIOS

AOL prices

Just for the record, basic unlimited AOL dial-up is $9.99 a month, which includes phone support (a 1-800 number that connects direct to India). There's a $25.90 version that includes a lot of odd extras such as ID theft insurance and PC hardware insurance. I can't imagine why anyone would opt for the higher-priced version.

For anyone with their own Internet connection, AOL is free. Some people still opt to pay the $9.99 fee to have phone support, and dial-up available in case their high-speed connection goes out.

»free.aol.com/thenewaol/plan_choice.adp
Forums » AOL Buys Bebo For $850 Million


Friday, 09-Jan 03:38:08 Terms of Use | Privacy Policy | Hosting by www.nac.net - DSL,Hosting & Co-lo | feedback | contact
over 9 years online! © 1999-2009 dslreports.com.