Update: A source close to AOL reached us with a different take: “There is a very active and structured process being run – both reacting to queries that have come in and reaching out to potential players.
“To be fair, it probably is 75% reacting to queries and 25% reachout. But I don’t think it’s fair to say [AOL is not] trying.”
Bet on “shut down,” says a source close to Bebo employees.
This source says that AOL is only just now getting around to doing the due diligence companies usually go through while they’re being shopped.
Bebo employees who went through the last sale know that there’s usually much more happening when a company is on the block.
“Prior to AOL acquiring us, there were several months of due diligence conducted by our own auditors/finance team. We knew something was up, just not exactly what.”
Tax experts told TechCrunch’s Michael Arrington AOL could avoid “$380 million and change” in taxes just shutting down Bebo instead of selling it.
Our source says Bebo employees are at peace with the shut down.
“Given the way AOL has totally ignored Bebo for the past 6+ months, no one was surprised by the announcement. Most [employees] are relieved, as they can now hunt for new opportunities without any guilt for thinking to leave a project they invested so much time and effort into.”
We reached out to AOL PR, but haven’t heard back.
Business Insider Emails & Alerts
Site highlights each day to your inbox.