AOL is to either sell or close Bebo after paying $850 million dollars for it just 2 years ago, realising that it's just not worth the investment to keep it going.
"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. AOL is not in a position at this time to further fund and support Bebo in pursuing a turnaround in social networking, said the company in a statement.
Back in 2008 and the story was very different with Randy Falco, chairman and chief executive of AOL, at the time saying: "With the addition of Bebo and the creation of People Networks, AOL is uniquely positioned to capitalise on the exploding social media space by delivering a more personal experience for consumers and a better way for advertisers to engage them".
AOL hoped that the acquisition of Bebo would propel them into the social networking sphere to take on companies like Facebook and MySpace, however over the past 2 years that dream has fallen flat with the social networking site being pushed around AOL like a unwanted dog.
According to Google Trends, Bebo doesn't even touch Facebook when it comes to visitor figures with reports suggesting that Bebo has lost almost half its traffic over the last 12 months.
Is the dream of making money out of social networking now over? Have your say in the comments below.