Is Time Warner Having Second Thoughts About Bebo?
Most would agree that Time Warner overpaid when it bought social network Bebo back in March. Given the challenges faced by the company’s online businesses since then, among them declining ad sales and the difficulty of monetizing social networks, the $850 million price tag for Bebo has come to look even more expensive. And now it appears that Time Warner is having second thoughts. CEO Jeff Bewkes told The Wall Street Journal that:
To be fair, Bebo wasn’t the only expensive acquisition. Time Warner has spent nearly a billion dollars to build AOL’s Platform A advertising business, which continues to struggle. No wonder Bewkes is saying no to any more deals for now! That means one less buyer for all the startups that were looking to flip.
Photo courtesy of Gaetan Lee via Flickr.
