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The AOL Right Hook – They buy Bebo!

By mega | Thu, Mar 13, 2008 7:07 pm

aol-bebo.jpg

Does anyone out there know what in the digital world is AOL trying to do? In a post Microsoft-Yahoo merger-Google dominated world, this is a vital question.

Let’s look a bit at the AOL milestones as of late. They swapped Platform A execs in and out last week, this week they buy Bebo, last year they began consolidating their operations to New York, and most interestingly, Time Warner lost the one leader (my man Richard Parsons) who said they would not be spun off.

So with the acquisition of Bebo there are pieces to the AOL puzzle that seem to be taking some shape. In my fair analysis of why the Bebo acquisition makes sense a) it certainly bolsters the ad inventory for Platform-A significantly particularly as it relates to a boost of audience in the tween, teen and young adult demographics. b) Bebo brings a membership of somewhere in the neighborhood of 40 million uniques; c) Interestingly Yahoo also reps ad inventory on Bebo. Therefore, assuming that relationship goes away or even if it remains intact, there is significant additional ad revenue for AOL. Lastly, but the crucial jig in this AOL jigsaw puzzle is a real viable social networking platform, which finally puts AOL into the fray as a more viable and increasingly relevant Web 2.5 player.

What other MEGA moves did you not see / do you see coming for AOL? ;-)

Category: News, Social Networking, Strategy, Trends, Web 2.0

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This post was written by:

mega - who has written 7 posts on Black Web 2.0.

Kevin McFall, is a media executive, with deep expertise and knowledge of digital product management and business development. Currently serving as President of Red Clay Digital, a consultancy providing guidance to company’s seeking to leverage online, mobile and other digital platforms for partnerships, customer acquisition and engagement. Prior to his current role, Kevin was co-founder and Vice President of Products & Content for RushmoreDrive.com a division of IAC. Prior to joining IAC, Kevin led digital product & affiliate programs for Zap2it.com TV & Movie guidance service (Tribune Company) as the Director of Products & Partnerships. His career has also positively impacted the American Bar Association, Sara Lee & Digital Equipment Corporations. Kevin is the immediate past president of the University of Illinois at Urbana’s Black Alumni Network, and is a lifetime member of the Alumni Association. Kevin currently serves on the Urbana Campus Alumni Advisory Board & on the board of the Inner City Computer Stars (icstars.org) Foundation. Kevin is an active member of Kappa Alpha Psi Fraternity & several other national professional associations including the Minority Media Executives, Black MBAs, & NAMIC. Kevin earned an MBA from the Sperling School of Business at the University of Phoenix, and a B.S. in Computer Science & Mathematics, from the University of Illinois at Champaign.

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  • Joseph Weisenthal on PaidContent.org compiled a nice timeline of Bebo milestones leading up to the AOL acquisition. See article here at http://www.paidcontent.org/entry/419-bebo-in-li...
  • In my opinion, AOL had to make a move for a social site not only for "traffic" but for a development platform. The company has recently been very focused on promoting the API and developer tools for AOL.

    This acquisition was more about allowing AOL to compete with Facebook, MYSpace and others new "Application Platforms" which is the where all the new "ad dollars" will be spent due to the crazyamount of traffic the sites are generating from 3rd party applications and widgets.

    Toby "Urbantech" Morning
    http://urbantech.bluemonitor.com
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