AOL to sell social network site Bebo
AOL Inc will sell its Bebo social network site to private investment firm Criterion Capital Partners for an undisclosed sum, as it tries to restructure its business and deal with declining revenue.
Thursday's announcement comes as AOL has been trying to streamline operations since being spun off from Time Warner Inc last year. It has been struggling with a declining Internet access business and weak advertising revenue.
In April, AOL said it planned to either sell or close down Bebo, bought more than two years ago for $850 million.
The Wall Street Journal previously reported that the Bebo sale would probably be at a "small fraction" of what AOL originally paid.
AOL said the deal will give it a meaningful tax deduction, and forecast it would record a deferred tax asset and benefit in a range of $275 million to $325 million for the second quarter.
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