Bebo Rejects $550 Million Offer

Multiple blogs such as Techcrunch and Mashable are reporting that popular social networking site, Bebo.com, turned down a $550 offer from British Telecom.

This doesn’t surprise me, and in my opinion probably the right move for Bebo. Bebo has definitely not reached their peak and this offer is similar in price to number of members ratio as the myspace acquisition. Bebo knows it is going to be growing rapidly over the next 6 months similar to what Myspace did. A social networks value is in their members plus their target/niche market. Since Bebo’s target market is everyone, similar to myspace, more members equals a higher valuation. How much would myspace go for now? A lot more then the original $600 million acquisition.

SN’s such as goingon.com and peopleaggregator.com are the future of social networking, however the mass audiences are still interested in the current format of social networks such as bebo. My thought…Bebo should hold out for another 4 - 6 months…then sell sell sell.

[tags]Social Networking, Social Network, Bebo, Acquisition, Buy Out, Myspace, goingon, peopleaggregator[/tags]