According to a recent report, Criterion Capital Partners LLC has bought the Bebo networking site from AOL Inc. Sources reveal that the Company has sold the site for less than 2% of the amount it spent on buying it.
AOL is a New York-based Internet Company and Criterion Inc. is a Los Angeles-based Company, which provides commercial banking and monetary counseling.
AOL had reportedly paid a sum of $850 million for the service but now it has sold it for only $10 million, a person from the Company revealed on the condition of anonymity. AOL revealed that its motive behind the decision is to have a tax benefit of $275 million to $325 million in this quarter from the sale of the site.
From April 6, the Company was contemplating on either closing the site or selling it off. The networking site had reportedly faced tough competition from other networking sites like Facebook and MySpace.
Tim Armstrong, AOL Chief Executive Officer, disclosed that Criterion Capital Partners are experts in devising new strategies for growth and other innovations and, therefore, the Company has sold off its site to them.
Criterion said that it will not reveal the price of the deal in public.