A Billion for Bebo? Bubble, Bubble, Double Trouble

Posted by: Rob Hof on July 11, 2006

Mike Arrington at TechCrunch says the social-networking service Bebo has turned down a $550 million buyout offer—not far off from what News Corp. paid for MySpace. Bebo’s asking price: north of $1 billion. That’s on top of Facebook apparently turning down an offer of $750 million not long ago. Another story says the supposed suitor, British Telecom, denies the rumored offer. “Someone’s not telling the truth here, which is always a whole new story,” Arrington notes in comments on his post.

Still, I share the worries of other commenters that this is getting out of hand. Maybe a couple of social-networking sites can build services for the long haul. But with time such a precious commodity—and one that only gets tighter as these folks in high school and college move into jobs and families—I wonder how many of these can survive. And the influence of so much money—vaporous as it may turn out to be—is never good on young companies. When are we going to learn that for good?

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Reader Comments

Edward Aten

July 12, 2006 09:49 AM

Agreed,
But the stickiness factor for something like MySpace is greater than that of something like a craigslist or email service. Myspace didn't win my business because they have even a decent user experience (they don't), but because my friends are there. Why do I still use AOL Instant Messenger 8 years later even though that is a product that gets incrementally worse each generation and there are many better designed alternatives? Because my friends are there.

shon

September 13, 2006 07:03 PM

seem like greed

bebo

January 24, 2008 07:14 AM

Bebo Developers is the name of a dynamic quality assertive and low cost team of developers who expertise in developing Face book, Open Social applications that include Bebo, LinedIn and iGoogle widgets.
Possessing some of the best available talent present we are proud to have developed a
Wide range of deployed applications that rank amongst the highest used by everyday Face book and Open Social applications. The increasing popularity of Face book
Applications has made every businessman want to get his hands on a Face book application that increases his market and product and this is where Bebo Develop.
Visit now: http://bebodevelopers.com"

zslkrhj

April 27, 2008 12:28 AM

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BusinessWeek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, Douglas MacMillan, and Spencer Ante dig behind the headlines to analyze what’s really happening throughout the world of technology. One of the first mainstream media tech blogs, Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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