Bebo sold to founder for $1m

<p>Bebo’s founder has bought the social network back.</p>

The founder of social networking site Bebo has repurchased the company for $1 million (£657,000) at an auction.

Michael and Xochi Birch set up Bebo around ten years ago and it was sold to AOL in 2008 for $850 million.

But it was sold on a couple of years ago for just $10 million as the number of users on the site dwindled compared to rivals such as Facebook and Twitter. YouTube, Tumblr, Google+ and Reddit are among the other sites to have stolen a march on Bebo, which was especially popular with teenagers in its heyday in the early 2000s.

Mr Birch has now bought the company from its receivers and stated on Twitter that he intends to reinvent the website through his incubator fund Monkey Inferno.

Monkey Inferno head Shaan Puri said: "We know the odds are stacked against us, but we love challenges and the Bebo users deserve better than what they have received the past few years."

Bebo rival Facebook recently claimed it has signed up its billionth member to the social network.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.