AOL looking to sell or close Bebo

AOL is looking to dump its ownership stake in social networking site Bebo, according to multiple reports.

Economic news site PaidContent cited internal memos which suggested that the company was not seeing the returns it expected when it purchased Bebo in 2008 for US$850 million.

While AOL had high hopes for Bebo at the time, the company later showed sings on lament about the deal.

"As we evaluate our portfolio of brands against our strategy, it is clear that social networking is a space with heavy competition, and where scale defines success," the memo read.

"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."

Further reports have suggested that the company may also be looking to sell its stake in instant messaging service ICQ.

Since its spin-off from Time Warner, AOL has been looking to remake itself and drop its unprofitable ventures. The company's focus has turned from providing multiple internet services to focusing on the transition into a web news and content service.