AOL is planning to sell or close down Bebo, the social networking site it purchased two years ago for $850m, according to reports on the internet.
BBC reported that the company said it was unable to provide the "significant investment" Bebo needed to compete with its social networking rivals. In a letter to staff, AOL 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."
At one time, Bebo was among the most popular social networking sites, bigger than MySpace. The company was the first to link up with Microsoft on the Microsoft Messenger service. But over the past few years it has failed to compete effectively against rivals such as FaceBook.