AOL might dump Bebo – marketing laws still stand

Posted on by in Marketing, Social Media

AOL purchased Bebo for $850 million two years ago, it now looks like they are going to reduce focus on the social netw0rking number 3. The move was a headscratcher in the first place because it was $270 million more than newscorp had paid for MySpace. It was also a headscratcher because the competitive landscape, as far as social networking goes,  was changing so much during that time. Since then, Facebook has emerged as the clear winner when it comes to social interaction.

All this adds up to further proof that in the long run, every market becomes a two horse race. At the moment, Facebook is a clear leader in social networking, both in terms of revenue and in users. Facebook has over 400 million users and could earn over $1billion this year. Myspace has only just over 100 million users and earns just under $50 million. Everyone else is a distant last, even in terms of content sharing through social networking.

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