Bebo Files Chapter 11 Bankruptcy Petition

Bebo used to be one of the largest social networks back in 2008.  AOL acquired Bebo in March 2008 for $850 million in cash.  AOL sold Bebo to Criterion Capital and several other investors in June 2010.  Some of the minority shareholders in Bebo include co-founder Michael Birch, SV Angel, and Hecker Consultancy.  Bebo has filed a voluntary petition for Chapter 11 Bankruptcy in the Central District of California, according to the Chapter 11 Cases blog.
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Bebo Founders and Shareholders Suing Criterion Capital

Bebo co-founders Michael and Xochi Birch (MXB Holdings) along with SV Angel, Michael Jackson (TV executive), and Richard Hecker have filed a lawsuit against Criterion Capital Partners, who bought Bebo from AOL in June 2010. The group of investors were persuaded to put money into Bebo after Criterion acquired the social network, but the investors are alleging that Criteron was mismanaging the website and withheld information from them.
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Bebo Founder Michael Birch Invests In His Own Social Network That He Sold Off

Michael Birch, the co-founder of Bebo, is investing money into the same social network that he sold to AOL for $850 million. The amount he is investing is undisclosed. Birch is also becoming an advisor in the company. AOL had written off Bebo and sold it to Criterion Capital last summer for a much smaller amount (pegged at around $2.5-$5 million). “There is a huge opportunity to re-invent Bebo, to approach social from a different perspective and create a viable alternative to the now established market leaders,” said Birch. [AllThingsD]

AOL Finds A Buyer For Bebo For A Lot Less Than They Paid For

AOL is selling social network Bebo for a small price. AOL bought Bebo for $850 million in 2008 and the numbers being thrown around for the sale is between $5-$10 million. The buyer is expected to be Criterion Capital Partners. Selling the social network at a low price will allow AOL to write off the full purchase price for tax reasons. [WSJ]

Why Does AOL Want To Sell Bebo?

AOL, Inc. (NYSE:AOL) EVP Jon Brod sent over a memo to employees regarding the reason why the company is interested in shutting down Bebo. The core reason is that Bebo is a business that has been declining and it would require too much of an investment in an effort to compete. Below if the full memo [BusinessInsider]:
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Former Bebo President Joanna Shields Joining Facebook

Bebo President Joanna Shields left AOL last May before the People Networks division was separated.  Now Shields is joining Facebook in a sales and business development VP role in the EMEA region.  Shields will continue to work at Shine View as a non-executive chairperson too.  Shields will be reporting to Facebook global sales VP Mike Murphy. [paidContent]

Stephane Panier Becomes Head Of Bebo Global Ops

AOL social network subsidiary Bebo.com has named a new head of global operations, Stephane Panier.  Panier will be responsible for scaling the social network’s media operations and advancing the global reach of the service.  Currently Bebo has 24 million users around the world.  Panier was previously the VP and COO of Bebo.  Panier will be reporting to Jon Brod, the EVP of AOL Ventures.

Before joined Bebo in January 2009, Panier worked at Google for 6 years in finance and operations positions.  “Stephane is a proven strategist and operator with executive experience from some of the world’s leading brands and businesses,” stated Brod. “He is the ideal leader to build on Bebo’s existing successes, to chart a course for its future, and to execute against that vision.”