STATT MAGAZINE

AOL Deal Acquisition of Bebo

Competition increased traffic and advertising opportunities on the Internet apparently has become the standard of the strategy in cyber world. This Situation makes AOL attempt acquisition of Bebo, a social networking media, which is quite popular currently worth $ 850 million U.S. dollars. AOL’s decision to engage Bebo is based on consideration to increase their traffic. With the high traffic is expected later this can open the opportunity for a wide ads income.

Although Bebo is not as big as MySpace or Facebook, but Bebo has been recognized by many parties which able to reach in the traffic of foreign visitors, including from Britain. In fact, according to comScore Inc., Acquired Bebo visitors from outside the United States can be compared with its rivals.

According to an AOL executive, they plan to control the traffic outside of AOL, support ad website, especially the international community and instant messaging AOL, AIM and ICQ, to try to Bebo in the United States. Meanwhile, Randy Falco, AOL Chief Executive, mentions the acquisition as a strategy to encourage their ads. AOL admitted they are looking for ways to increase revenue from the ads, because after a quarter growth to some extent, the expansion of AOL’s ads in the world felt begin slowing. This is added to the pressure from their parent company Time Warner Inc. The sales of the business units want their Internet.