AOL Buys Bebo Social Networking Site

Looking to build ad sales by adding heavily-traveled Web destinations, AOL today announced plans to acquire top-tier social networking site Bebo for about $850 million, in what’s become a market segment land grab.

The mega-deal caps a busy week in acquisitions, partnerships and site launches, with the common thread being ad models sorely needed to turn Web site traffic into profitable revenue.

Having established their sites as heavily traveled and used Web destinations, seemingly all parties are looking to commercialize social networks.

“This is going to be the cornerstone of our strategy to really go after the social media space,” said AOL President and COO Ron Grant.

The AOL-Bebo deal is further proof that social networking sites are far more in the eyes of content owners, distribution companies and infrastructure vendors than simply fad-driven sites that are trendy but not part of a long-term trend.

Whether it’s social networking sites, Web video sharing sites, or a combination of the two, the likes of MySpace, Facebook, YouTube and Bebo are valuable as more than just heavily-traveled sites but also for the detailed information contained in user profiles.

Lost in Microsoft Corp.’s purchase of a small chunk of Facebook for big bucks last October is the value of the site’s user profiles, which, because they contain demographic info and detail on likes and dislikes, could rove priceless for targeted advertising efforts.

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