Pair who sold Bebo for $850m buy it back for $1m

The British couple who sold social networking site Bebo for $850m five years ago have bought back the company for just $1m and say they will relaunch it.

Michael Birch and his wife Xochi launched Bebo in 2005 after meeting at university in London and the site became the destination of choice for teenagers to chat and share pictures, attracting 40m users by 2008.

But as Facebook and Twitter began their rapid rise, Bebo fell out of fashion and by the time it was sold to AOL, analysts were warning that it was vastly overpriced.