AOL to sell social networking website Bebo

Washington, June 19(ANI): American Internet services company AOL is all set to sell its social networking website Bebo for an undisclosed sum.

AOL said that the deal with private investment firm Criterion Capital Partners would give it a meaningful tax deduction, and forecast it would record a deferred tax asset and benefit in a range of 275 million to 325 million dollars for the second quarter, The Independent reports.

The move comes as the New York based company tries to restructure its business and deal with declining revenue since being spun off from Time Warner Inc last year.

It has been struggling with a declining Internet access business and weak advertising revenue.

Earlier in April, AOL had announced that it was on the verge of shutting down Bebo or selling the company, bought over two years ago for 850 million dollars.

Bebo had gained popularity in the United Kingdom, but never gained traction in the U.S. and lately it has also been losing users to competitors' like Facebook and Twitter.

Meanwhile, Criterion Capital Partners' Managing Partner, Adam Levin, said that Bebo was an attractive media site due to its "young, highly active user base, revenue history, presence in countries throughout the world and solid technical infrastructure". (ANI)