AOL set to sell or dissolve Bebo

Social networking site Bebo looks set to hit a bargain bin near you as parent company AOL announced it was unable to provide the "significant investment" required to keep it afloat.

Since buying Bebo in 2008 for £417 million, AOL have seen the site's popularity take a nose dive; in February of this year Bebo attracted 12.8 million visitors while the likes of social networking giant Facebook boasted a rather hefty 462 million.

Although Bebo was once one of the UK's most popular social networking sites it is thought AOL have been far from impressed with its inability to catch on in the US; the popularity of Facebook, Myspace and Twitter seeming somewhat impenetrable.

The trend in slick, minimal social networking that can link up to mobile phone interfaces as well as feed information to and from other websites have also worked against Bebo's current format.

Jon Brod of AOL Venture broke the news to employees via email when he 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.

"AOL is committed to working quickly to determine if there are any interested parties for Bebo."

Following Bebo's strategic evaluation in May, AOL is expected to open its books to any potential buyers.