The sale of social networking site Bebo has gone ahead with AOL offering the gargantuan figure of £417 million. As one of the world’s  largest social networking sites behind such players as Facebook and MySpace it is unsurprising that it is a hot property; with over forty million members who are believed to view an average 78 pages a day, the amount AOL are willing to pay seems even more realistic. The price tag could even be considered cheap when compared to rival social networking sites; last year, Microsoft’s £120 million only got them 1.6% of Facebook, the price AOL have paid in comparison is a bargain.

The increase in value of social networking sites has been astronomical. MySpace, bough in 2005 for a measly £280 million by Rupert Murdoch’s News Corp is now worth an estimated £740 million. This rise in value can be attributed to the importance that these kinds of sites have to advertisers. The posting of information allows advertisers to send offers and deals that may match a user’s online profile. This targeting, or ‘directed’ advertising is clearly desirable as people who are interested in offers receive them and advertisers have a greater success rate. Subsequently it is little wonder that the price of social networking sites has skyrocketed.

The move from AOL comes in a transitional period for the company who are apparently about to split from investor and controlling element, Time Warner. As the world’s ninth most popular social networking site the move by AOL should add another string to its already expansive bow. In the UK Bebo is even more popular being ranked in second.  One person will be licking his lips at this news, founder Michael Birch, a British man who still possesses a large constituent of the business is set to make millions.  AOL will be hoping that the Bebo buyout will add to the already large set of services they are able to provide users.

Related posts:

1. AOL’s Social Media Dream Over as Bebo Sale Confirmed
2. Protecting Our Children From Social Networking Perverts
3. Could Facebook Privacy Fiasco Affect Internet Marketing?
4. Facebook Browser announced
5. MySpace is to change