AOL Joins Social Graph Race, Buys Bebo for $850 Million

This morning AOL announced that they are acquiring Bebo for a whopping $850 million. This is a surprising move as well as a surprising valuation considering their relative size. Currently, Bebo’s dominance exists in Europe but not elsewhere. In a conference call this morning, AOL stated that they will now have a social graph of over 80 million users through combining Bebo and AIM.