From Friends Reunited to MySpace: Social networks and new owners

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In light of recent news that AOL is to try to offload Bebo or scrap it, we have to wonder how these older social networking sites are able to counter the constant attack from Facebook and Twitter. MySpace was a big player a few years back, but has since struggled to keep its users.

The Telegraph goes into detail about how social networks such as MySpace and Friends Reunited rely on new owners in the hope of turning its fortune around – sadly this has not happed to Bebo. This service is seen as a pre-Facebook service, before they become old enough to use the grown up social networking service.

MySpace was a big deal a few years back, with News Corporation paying £364 million, ITV paid £175 for Bebo – so was this money well spent. Well according to the Telegraph report, no. It seems that the value of MySpace is almost zero, and Bebo was sold off last year for just £25 million.

We have to wonder if the same could ever happen to Facebook, LinkedIn and Twitter? Although the big three are still in private hands, they have all been linked to takeover bids. Although Facebook would not be a great investment right now, as it has already started to lose value – from $15 billion in 2007 to recent figures of $11.5 billion. However, the social networking site has retained its high value for a lot longer than other dotcom businesses.