AOL plans to sell or shut Bebo

AOL plans to find a buyer for its social networking site Bebo, for which it paid $850m (£556m) in 2008, or shut it down. The level of competition in social networking makes it difficult for the company to fight larger players such as Facebook and News Corp’s MySpace, AOL said. The company plans to decide whether to close Bebo or sell it by the end of May, it told staff yesterday. "Bebo, unfortunately, is a business that has been declining and, as a result, would require significant investment in order to compete in the competitive social networking space," the company said in a memo.