AOL Finds Buyer for Bebo

AOL has found a buyer for Bebo. The Web company today said that it has sold the social networking property to hedge fund firm Criterion Capital Partners. The two companies did not disclose the terms of the deal.

AOL acquired Bebo — a social net service with strong roots in the U.K. — for $850 million in 2008.

The deal was universally panned, and Bebo’s audience has steadily declined. In April, AOL announced that it was seeking a buyer for Bebo, but was also considering simply shutting down the property.

In a note to employees, AOL CEO Tim Armstrong was frank about the sale — saying that it would help the company save some cash.

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