AOL has announced that it is planning to get rid of ailing social networking site Bebo.
The internet giant said it was unable to provide the funds necessary to keep up with the bigger social networking sites.
To that end, it will either be selling Bebo in the near future, or writing off the $850m (£417m at the time, according to the BBC) it paid for the site two years ago and shutting it down.
AOL cited the explosion in popularity of sites like Facebook as a reason for the decision.
"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," said Jon Brod, Executive VP of AOL Ventures in an email to employees.
Article continues below
"AOL is committed to working quickly to determine if there are any interested parties for Bebo."
UK users might be surprised at the decision, given that Bebo is still one of the leading social networking sites in the UK.
But in the larger and more lucrative US market it is falling quickly behind the likes of Facebook, prompting AOL to make this decision.
Via the BBC