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AOL to sell Bebo

Internet giant says it will sell or shut down the social networking site.

AOL said it needed "significant investment" to become competitive, and the company was not in a position to provide such funding. AOL acquired Bebo for $850m (£417m at the time) two years ago when it had about 40 million users worldwide.

Bebo has failed to increase its user base and its US audience has fallen, according to data by comScore, who said that whilst Bebo had been strong in the UK, US members dropped to 5.1 milion from 5.8 million a year ago.