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AOL: Bebo not worth investment, will be sold or closed

Company confirms that the social-networking site will be sold or shuttered by the end of May, as staying competitive would require too much money.

AOL confirmed Tuesday that social-networking site Bebo will either be sold or shuttered, a victim of a highly competitive landscape and a parent company that doesn't want to invest to compete. The company will determine its fate by the end of May.

AOL, then part of Time Warner, bought Bebo for $850 million in March 2008 but struggled to build a name for itself outside of the U.K., where it's one of the most popular social-networking sites. In the U.S., it never really gained any traction. In a memo to employees, the company said:

"Bebo, unfortunately, is a business that has been declining and, as a result, would require significant investment in order to compete in the competitive social networking space."

Read more of "AOL: Bebo not worth additional investment; Sale or closure coming soon" at ZDNet.