AOL Buys Bebo For $850 Million

Investment bank Allen & Co. has been shopping Bebo for some time. A number of potential buyers passed on the company, including News Corp., Microsoft and Google, our sources say. Yahoo may have also taken a long look, but recent woes probably prohibit it from doing any large transactions.

AOL’s intention, they told press in a briefing call this morning, is to marry AIM and ICQ with a proper social network. At a high level, AOL is saying they are basing much of their go forward social networking strategy around AIM. Layering in Bebo, they say, lets people communicate both synchronously and asynchronously. The goal is to allow people to both express themselves and extend existing relationships. AIM users have 100 buddies on average. Bebo’s platform allows those users to share and distribute media as well.

AOL’s also talking about their Platform A advertising platform which can blend big brand advertising along with performance. Bebo’s page views will be enticing to those brands to the extent they can track how those ads do.

Current President Joanna Shields (middle in picture) will continue to run Bebo and will report to AOL President Ron Grant (right in picture). Founders Michael Birch and Xochi Birch will shortly be leaving the startup, apparently. Rumor has it, though, that Shields has effectively run the company for some time. Bebo was originally launched in 2005.

Bebo is the second largest social network in the U.K. (its largest market) after Facebook. Recent Comscore data says Bebo has 22 million unique visitors and 11 billion page views; AOL said Bebo users spend an average of 40 minutes a day on the site in a press briefing. The company claims 40 million users.

Source: Techcrunch.com

Calacanis Fires People Who Have A Life

Mahalo founder and serial entrepreneur Jason Calacanis has some interesting tips up today about how to squeeze every single last thing from your startup employees.

Helpful advice includes (our interpretation):

• If you do meetings, have them over lunch, because you shouldn’t let your employees eat alone
• Don’t provide people with phones, they can always use their own cellphones, and this saves money
• Buy a decent espresso machine and provide food in the office, because you don’t want your staff to ever stop working, this way you keep them in the office every minute of every day
• Buy people who work hard a computer for home, so they can work after hours, on weekends and public holidays
• Urinary catheters are cheap, hook each employee up to one so they don’t waste minutes going to the restroom

OK, so I made the last point up. Here’s my favorite one though (direct quote):

• “Fire people who are not workaholics…. come on folks, this is startup life, it’s not a game. go work at the post office or stabucks if you want balance in your life. For realz.”

Apparently having a life isn’t “for realz” in Calacanis’ playbook so a note to possible Mahalo employees: expect to check your family at the door if you want to go work for JCal. Up to 18 hours a day for $30-35,000 (what I’ve heard is the going rate for base Mahalo employees) , you’re never allowed to go outside during this time or have a proper break…. sounds like a great place to work.

Source = http://www.techcrunch.com/2008/03/07/calacanis-fires-people-who-have-a-life/