Can Bebo be reinvented to tackle the likes of Facebook?
Bebo, the social networking site, which once dominated all others in the market, a favourite mainly by the younger people, could now be set to make a sensational return… well that’s the hopes of former and now new owners Michael and Xochi Birch.
After a dramatic turn around, which saw Michael and Xochi (founders of Bebo) sell the company to computing giant AOL in 2008 for $850m. They are now purchasing the business again, except for only a mere fraction of what they paid for it – $1m.
This is not going to be an easy task as the site currently has only a small percentage of the users it had when they sold it (40 million monthly users), a huge chunk moving across to competitor and market leader Facebook. The shift of users proved to be such a downfall for Bebo that AOL ended up selling on the website to Criterion Capital Partners for $10m in 2010.
However, although the prospect may seem daunting for Michael and Xochi, they are not alone. Marissa Meyer is doing a similar thing at Yahoo and MySpace is also trying to reinvent itself. This could however add more pressure in terms of competition, but if these other companies can regain some nostalgia, then it surely will motivate Bebo just the same.