You put your left leg in…
Is Bebo the Pascal Chimbonda of social networking?
Writing as a fan of the once-mighty Tottenham Hotspur, I am delighted to see that there seems to be an organisation with a more confused and misguided buying/selling policy. After acquiring Bebo for a hefty $840m last year, it would appear that AOL is ready to sell it already, according to the ever reliable TechCrunch.
If this is indeed true, does it mean that the bottom has fallen out of the social networking market already, or that AOL paid way over the odds for Bebo at the time? I’d say a little of both. AOL were probably swept along by Facebook-inspired desperation to get their hands on a social networking site and Bebo simply hasn’t delivered the ROI that AOL was expecting. It is still hugely popular with the kidz (so I am told) but advertisers just aren’t seeing the return, so in tough economic times, are looking elsewhere.
Its embarrassing being a Spurs fan right now, so can’t help but feel a cheeky lolz at this news :)
Tags: AOL, Bebo, social networking, TechCrunch, Tottenham Hotspur
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Comments (9)
January 27th, 2009 at 1:38 pm Posted by Ian Glover
Bebo hasn’t quite aspired to the heights of ‘Greedy Journeyman B**tard’ yet.
Bebo = Tottenham Hotspur
Facebook = Sunderland - the mightiest of the mighty!
January 27th, 2009 at 5:19 pm Posted by Chris Lee
Give social networking a chance. no one’s quite figured out how to monetise it yet but with such large audiences it’s surely only a matter of time. internet advertising will really come into its own in the next two years so let’s talk again by 2010.
having said that, the Chimbonda analogy is certainly leftfield.
January 28th, 2009 at 10:15 am Posted by Pauliea
I guess it is leftfield…but just struck a chord.
In terms of social networking, let’s see if the numerous sites actually have legs. I still use Facebook but nowhere near as much as I did in those heady days of 2007…
January 29th, 2009 at 8:24 am Posted by Jason Nibbs
AOL definitely paid over the odds, but that was the going rate back then.
I think Chris Lee makes a good point - it is difficult for these companies to monetise social networks, & I think that challenge is perhaps greatest for Bebo when you look at the ‘big 3′ (yes - just like Football, only a big 3 I’m afraid & Spurs aren’t in it).
Both Facebook and MySpace target, and are mainly used by, slightly older people, whereas Bebo is young teens - that automatically makes it more challenging.
But I wouldn’t be surprised if the bulk of the rumoured 10% job cuts at AOL came from Bebo.
January 29th, 2009 at 9:55 am Posted by Pauliea
Jason - agree on most counts. If memory serves correctly, at the time of the acquisition the general feeling was that AOL had made a good deal and the price wasn’t too far over the odds. Microsoft paid a similarly huge fee for its stake in FB….
And the jury is very much still out, no reason to think that Bebo can’t be sustainable over a period of time. But that said, its definitely making for some tough times at AOL while they try and figure out how to do so. Or flog it to someone else!
January 29th, 2009 at 12:37 pm Posted by Hugh McKinney
The question is does it really matter if the bottom has fallen out of the market - does social networking exist solely to turn a quick buck or to provide a global “community” resource?
If it can’t do both, which is more important?
Is it about cost and return or about value?
February 3rd, 2009 at 8:53 am Posted by Steve Earl
Leftfield? Isn’t Chimbonda at right back?
Better than it being a Robbie Kane of a deal though - sold on for a loss after spending six months sat on it arse.
Yes I know all about your heady Facebook use in 2007.
February 3rd, 2009 at 8:54 am Posted by Steve Earl
Robbie Keane and its arse, even..
February 3rd, 2009 at 12:02 pm Posted by Paul Allen
damn - I was about to pick you up on that missing ‘a’…
Hey, there is only one over zealous social networker at Rainier, northern fella, owns half the North East
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