It’s not quite on the level of Steve Jobs returning to Apple, but every time a founder comes home it leaves me feeling all warm and fuzzy. This time it’s the turn of Michael Birch who has re-joined Bebo as a strategic advisor, along with investing in the social network which he co-founded with his wife Xochi in early 2005 before selling the company to AOL in 2008 for $850 million.
Since then, of course, Bebo has seen another change of hands: After being left to languish by AOL, who eventually shut it down for tax purposes, the social network was sold to Criterion Capital Partners for about $10m in June of this year. → Read More
Following on from the recent addition of IM powered by Meebo’s web-based client, Bebo has rolled out a video chat feature called bChat. Think Chatroulette “sans-private parts” was the line given to me (phew!). It’s provided by Vchatter, the social video chat service that is already available on Facebook and as a standalone offering, and is part of a wider strategy by Bebo to become relevant again by making its platform more realtime and interactive. And about time too.
A quick re-cap: After Bebo sold to AOL for $850 million in 2008, the platform was left to languish, with AOL eventually shutting it down for tax purposes and selling it for about $10m to Criterion Capital Partners. However, as we recently reported, the new team of 20 or so employees (and growing) has already made the site profitable and it’s now coming back in user numbers. Today’s news is another sign that the social network has a new spring in its step. → Read More
Bebo just launched Meebo’s web-based instant messaging client across the social network and the company says a million messages have been sent already
This is Bebo’s first step towards a much more real-time, interactive platform since they sold to AOL for $850 million in 2008. Right after that AOL let the platform languish, eventually shutting it down for tax purposes and selling it for about $10m to Criterion Capital Partners. True story.
The new team of 20 or so employees has – surprise surprise – made the site profitable and it’s now coming back in user numbers. Mike Arrington’s recent interview with CTO Akash Garg suggested they’d be going for “Self expression, mobile and video will be strong components.” Clearly IM and Meebo is part of that. → Read More
Bebo is like a bad case of herpes – it just keeps coming back. They sold to AOL for $850 million in 2008. Then AOL, under new management, sort of just shut it down for tax purposes, selling it for next to nothing to Criterion Capital Partners. AOL CEO Tim Armstrong called the whole thing a huge distraction.
But if you think you’ve seen the last of Bebo, you’re wrong. A whole new team is in place, and with just 20 or so employees the site is profitable and growing with 6 millionish active users. So what next? → Read More
The rumors are true: hedge fund Criterion Capital Partners is indeed the buyer of Bebo. As we reported yesterday, AOL is offloading the social networking service for less than $10 million (other media are reporting a purchase price of around $2.5 million).
To remind you: AOL paid $850 million for Bebo back in 2008. Ouch indeed.
In a press release that just went out, Criterion acknowledges that it has acquired the Bebo business from AOL and that it will “assume the rights and complete operating control over the global social platform business”. → Read More
AOL is close to selling Bebo to an investor group, we’ve confirmed from a source close to the company. The price? $10 million or less. Rumors of the acquisition first surfaced this morning, and the buyer may be Criterion Capital Partners.
That’s just a bit less than the $850 million AOL paid for the social network in 2008. And as decimated as Bebo is, it’s almost certainly worth more than $10 million. → Read More
Straight from the horse’s mouth: AOL CEO Tim Armstrong just told the TechCrunch Disrupt audience what most industry watchers already knew: the company made a strategic mistake in acquiring social network Bebo, and it ended up being a “major distraction” for them.
Armstrong admitted that it would have been very hard to make Bebo work right out the gate no matter what, and that probably the deal shouldn’t have gone through in the first place, given technology and other issues. → Read More
AOL needs to offload Bebo fast. And tax experts say that the best financial result for AOL may be to simply abandon Bebo rather than sell it. All of that makes for a rather awkward situation with Bebo partners.
How do you handle that awkwardness? Send out a mass email to all open media partners to explain the situation: → Read More
AOL has long regretted its $850 million purchase of social network Bebo, and ever since CEO Tim Armstrong came on board it’s pretty much been left to die on the vine. AOL is preparing a filing in the UK to alert regulators there of its plans to either sell or shut down the site. While a sale seems like the logical way to go, Bebo is pretty much worthless now and for tax reasons it might make more sense to simply shut it down.
In an email sent out to employees today, AOL explained: → Read More
Facebook has been famously thin in terms of its international organisation. Visiting their London offices recently impressed upon me how few people they actually have in Europe. A few sales staff, a PR, receptionist etc. As far as I could tell, only the affable Christian Hernandez was doing anything in wider Europe, as Facebook’s international biz dev guy. So it’s not before time that it’s expanding its global sales organisation.
Joanna Shields has re-emerged after recently exiting from her role at AOL, as Faceboook’s new VP of Sales and Business Development for EMEA. Joanna was previously CEO of Bebo and President of People Platforms at AOL.
Joanna was also the person who got advertising agencies to buy into Bebo, thus triggering its sale to AOL. We are talking one persuasive person here. → Read More
Newly independent Aol is still struggling with the fate of Bebo, the social network they acquired for $850 million in 2008.
No one argues that Aol underpaid for Bebo. And the social network has fallen from 22 million monthly unique visitors when it was acquired to just 14.6 million today (Comscore worldwide). But even so, Bebo clearly has some value on the open market.
Despite that value, Aol’s best financial option for Bebo will likely be to abandon it rather than sell it, say corporate tax experts we’ve spoken with. → Read More
Amid rapid growth, Foursquare has hired someone to help ease the load. Evan Cohen, Bebo’s former director of strategy and operations has been hired as Foursquare’s General Manager, we’ve confirmed with co-founder Dennis Crowley.
If the title sounds a bit odd, it’s because Foursquare is avoiding having executive-sounding positions, Crowley says. But Cohen’s role will be vital for the startup as he’ll be basically stepping in for much of what takes up Crowley’s time now: big deals, hiring, outgrowing our space, finances, and legal issues. “Everything that takes me away from product,” Crowley notes. In other words, basically he’ll be the COO of the young startup. → Read More
For all the billions of dollars created here, Silicon Valley is remarkably stingy when it comes to giving. I first wrote about this when I moved here in the great Web 1.0 Internet bubble. Back then, as companies went public all around us, one-third of households earning $100,000 or more gave $1,000 or less to charity—roughly half what the rest of the U.S. gave per dollar earned. And those were the fat times.
I don’t have comparable data to back it up, but anecdotally it seems the Web 2.0 generation is doing a better job at giving. Or at least Bebo founder Michael Birch is.
Birch has spent the last six months working with a team of two other people to build a social giving site for the popular organization, Charity:Water. It launched its beta site today, and with just a Tweet announcing it nearly 400 members have already raised some $3,000. → Read More
Interesting off hand comment by AOL CEO Tim Armstrong at the Fortune event this morning. Bebo, the social network AOL paid $850 million for in 2008, wasn’t mentioned on the list of AOL’s core product goals going forward. Late in the interview, though, Armstrong was asked where Bebo fits into that strategy. His answer, roughly quoted “Bebo may be better off under AOL Ventures, with it’s own P&L.”
Translation – AOL is looking to spin Bebo off into an independent company, and they’ll retain an equity interest via AOL Ventures. → Read More
Last week, Facebook took a $200 million investment that valued the company at $10 billion. So if Facebook is worth $10 billion, how much is Twitter worth? After all, Twitter turned down $500 million from Facebook late last year, and founder Evan Williams might not even sell it for $1 billion. But how about for $1.7 billion?
That is the valuation we come up with when we run Twitter’s numbers through our new social network valuation model. The model takes into account the size of each social network’s audience in different countries and the average online spending per capita in those countries. Using Facebook’s $10 billion valuation as a baseline, Twitter would be the fourth most valuable social network after MySpace ($6.5 billion) and Bebo ($1.8 billion). → Read More
A year ago we modeled out the true value of various social networks based on the idea that users in high-value online advertising markets like Japan, the UK and the U.S. were worth more (financially speaking) than those in lower value online advertising markets. Facebook had recently become the largest worldwide social network in terms of users, but based on our model MySpace was still by far the most valuable social network.
We’ve now remodeled social network valuations based on current user numbers and Facebook’s most recent $10 billion valuation. The results are dramatically different.
Based on the original year-old model, if Facebook was worth $15 billion (their then-current valuation), MySpace, with far more U.S. users, was worth nearly $20 billion:
Our model takes Comscore data for available countries and regions. We’ve graphed each of 26 well known social networks with the data we have been able to collect. We’ve then calculated the average advertising spend (estimated by PriceWaterhouseCoopers in a recent report) for each person online in each of those countries. For example, in the U.S., the total 2008 estimated Internet advertising spend is $25.2 billion. We’ve divided that by the number of people online in the U.S. according to Comscore (191 million), to get an average Internet spend per person of $132. View the raw data and calculations here.
The U.S., by the way, is only the 4th most valuable market per Internet user, trailing The UK ($213), Australia ($148) and Denmark ($144).
AOL’s People Networks division has today announced the launch of social networking site Bebo, which it acquired almost exactly one year ago, in several key European countries such as France, Germany, Italy, Spain and the Netherlands.
Before, Bebo was only available in English and for some reason also Polish, but now it will use IP-based geo-targetting to cater services in users’ mother tongues. It launched a latino site for U.S.-based users just last week.
Successfully rolling out social services across Europe is never an easy feat to accomplish, and Netlog and Facebook have a pretty strong foothold here, as does MySpace, although the latter appears to be struggling with their expansion strategy lately. Bebo is doing it the smart way – which is of course no guarantee for success – by teaming up with local media partners. → Read More
Social timelines are going mainstream (see AOL/Bebo), but startups are pushing them to the next level. Today, Lifeblob, the Indian startup working on ways for you to visualize your life on the net, is introducing a refreshed version of its social timeline creation tool. With it, you can easily patch together a visual representation of your life’s most memorable moments by timestamping certain events and enriching them with photos, text and videos. The end result can easily be shared on a variety of social services, or embedded into any blog or web page (example below).
It’s an invite-only service for now, but we have an unlimited amount of invite codes for you. It’s simply techcrunch and you can use it to sign up here.
Lifeblob is one of the investments of SeedFund, the Google-backed VC fund who actively looks for early-stage financing deals within the Indian startup community. The company raised its first round of financing of approximately $1 million from the fund in August 2008. It employs only 4 people for now and its business model is centered around advertising – which it will start rolling out after its general launch – and premium services (like branded timelines, etc.) → Read More
In the first of several major product changes that will sweep through AOL in the coming months, the company is adding more lifestreaming capabilities to its Bebo social network today, including activity stream updates from rival social networks Facebook and MySpace. It is also introducing a visual timeline called a “Lifestory” that puts uploaded photos, events, and (soon) videos into a scrollable, chronological series of postage stamp icons at the top of members’ profile pages. Eventually, people will be able to subscribe to other Lifestories, including those from brands and bands, and embed them in their own profile pages or elsewhere. The timeline will also become the centerpiece of a Bebo iPhone app coming out soon.
The new features should all help to reinvigorate a site that has been in the doldrums lately. But Bebo’s biggest boost will come later this week when AOL migrates all of its AIM Profiles members over to Bebo on Wednesday and Thursday. This single move will more than double Bebo’s presence in the U.S., where AIM Profiles is even bigger than Bebo. According to comScore, Bebo’s unique U.S. visitors have been in decline the past few months to 5 million in January, whereas AIM Profiles has seen an upswing to 8.5 million.
At the center of AOL’s new product strategy is its “Lifestream Platform.” Think of it as FriendFeed for the masses, with personal AIM updates mixed in. → Read More
At the beginning of last December, Ning reversed course on its anything-legal-goes policy by declaring a prohibition on adult social networks. The reason? Porn wasn’t paying the bills; instead of attracting advertisers, it was scaring them away. Legal adult content was also begetting illegal content, which drew the ire of both authorities and lawyers with DMCA notices in hand.
Given the report released by CPM Advisors at the beginning of 2008, which suggested that Ning relied on adult content for much of its traffic, one might expect Ning to take a hit after shooing the smut out the door. But according to comScore traffic from January, that hasn’t been the case at all. → Read More
