AOL Managment Hates Bebo Buy

AOL Managment Hates Bebo Buy

Many senior AOL (TWX) managers did not want to buy social-networking site Bebo, sources tell us. Among the concerns, they did not (and do not) believe Bebo will hit the revenue and profit targets used to justify the $850 million purchase price.

(AOL bought Bebo last week. After analyzing the combination, we and other analysts concluded that the acquisition did not make sense).

Among the Bebo concerns held by some AOL senior managers, our sources say, were the following:

* An inability for AOL to monetize more social-networking inventory. According to our sources, AOL's Advertising.com already cannot monetize all the MySpace (NWS) and Facebook inventory it has available.

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