Social networking site Bebo's co-founder Michael Birch on Thursday announced that he is reinvesting in the social networking site and will return to the company as an adviser.

British-born Birch sold Bebo to AOL in 2005 for $850m, which was later disposed of for less than $10m to Criterion Capital Partners.

The co-founder, who will be working alongside Bebo's new chief executive Adam Levin, is confident that there is still a space for Bebo in the social networking world, despite Facebook's huge dominance.

Birch said he hopes to help Bebo's current management make the social network relevant again.

Bebo currently has 117 million registered users globally. However, less than 12 million are active, with nearly 40 per cent of its registered user base in the UK.