Bebo founder Michael Birch buys the social network back for US $1M

bebo-logoAnother turn in the twisted life of social network Bebo, which has unfortunately gone in the direction of a downward spiral for much of the last couple of years: the site appears to have been bought back by its founder Michael Birch for $1 million. Birch originally sold the company to Aol (owners of TechCrunch) for some $850 million back in 2008, and has since been a part of the group that has tried to rescue Bebo after Aol offloaded it. Birch now says he wants to “re-invent” it:

For a pretty tiny pricetag, this won’t be a case of “reinvent or die trying,” but it will be interesting to see how and if Birch can inject something new into the company, years after Bebo fell well behind the likes of Facebook and Twitter in the race among social media platforms.

The move comes about seven weeks after Bebo filed for Chapter 11 voluntary bankruptcy protection, at which point it was put under the receivership of the Burke Capital Corporation, which has been handling an auction of its assets.

Confusingly, prior to that Chapter 11 filing, the company had been jointly owned by Criterion Capital Corporation, as well as a consortium of investors that include Birch and his co-founder wife, Xochi. It appears that part of the issue has been that the group was unhappy with how that co-ownership arrangement was working, and so was intentionally trying to move it into a sell-off state, starting in February of this year.

In other words, Birch’s strategy has been going to plan so far. But shareholder wrangling is one thing. Now comes the hard part: trying to figure out if there is any life left for Bebo in an overcrowded market.

 

Get ready for #Portada17 on Sept. 14 in New York City! The Hispanic Sports Marketing Forum on September 13, and the 11th Annual Hispanic Advertising and Media Conference on September 14 will provide you with the best content and unparalleled networking opportunities to succeed in Multicultural America.


Editorial Staff

Portada Staff

MORE FROM PORTADA

AB InBev Awards U.S. Media Account to Dentsu Aegis Network

AB InBev Awards U.S. Media Account to Dentsu Aegis Network

Brewing giant AB InBev has named Dentsu Aegis Network’s Vizeum as its new agency for the U.S. and Canada.


BRAND MARKETING RESEARCH: Apple, Google World’s Top Brands

BRAND MARKETING RESEARCH: Apple, Google World’s Top Brands

A summary of the most exciting recent research in brand marketing in the U.S., U.S.-Hispanic and Latin American markets. If you're trying to keep up, consider this your one-stop shop.


Marketers Use Social Media to Boost Sponsorships: ANA STUDY

Marketers Use Social Media to Boost Sponsorships: ANA STUDY

Social media — particularly Facebook, Twitter, and Instagram — has emerged as a key component in supporting sponsorship activations among a great majority of marketers, according to a new study by the ANA (Association of National Advertisers).