AOL snaps up Bebo for $850m

BEBO has been bought by internet company AOL for $850 million (€545m) cash.

The teenage social networking site, which has more than one million users in Ireland, is the third largest social networking site in the US.

However, the price paid for Bebo is small when compared with the $240m Microsoft paid for 1.6% of Facebook last year and the $580m News Corp paid for MySpace back in 2005.