Why did AOL fail when it acquired Bebo?

Answer 1

AOL's acquisition of Bebo in 2008 ultimately failed due to a combination of factors, including misalignment with AOL's strategic vision and a rapidly changing social media landscape. At the time, Bebo was losing users to competitors like Facebook and Twitter, which had more innovative features and better user engagement. AOL struggled to integrate Bebo into its broader portfolio and failed to revitalize the platform, leading to a significant decline in its relevance. Ultimately, the acquisition did not yield the expected growth or synergies, resulting in Bebo being sold for a fraction of its purchase price just a few years later.