AOL Finds Buyer for Bebo

The Web company announced on Thursday (June 17) that it had sold the social networking property to the hedge fund firm Criterion Capital Partners. The two companies did not discuss the terms of the deal.

AOL acquired Bebo, a social networking site with strong roots in the U.K., for $850 million in 2008. The deal was universally panned, and since that time Bebo’s audience has declined. In April AOL announced that it was seeking a buyer for Bebo, but was also considering simply shutting the property down completely.

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