March 16 – AOL recently purchased the third largest social networking site Bebo in an attempt to expand advertising audiences and boost online revenue. AOL currently owns several of the Internet’s top blogs. Experts speculate, however, the value of this acquisition and what it means for Time Warner’s attempt to revive AOL.com. The New York Times reports here on the acquisition. Though this qualifies a significant acquisition, an important discussion rests on whether or not AOL is attempting to truly reinvent itself as its own website company, rather than become a patchwork of other successful websites.
So what does AOL plan besides the already exhausted strategy of buying companies with a large audience and hope that shakes up current business models? AOL’s next shift must be an internal one. By the looks of their current website, they are nothing more than a Yahoo.com copycat, providing a portal for simple web users. To bring back their mid-1990’s status of Internet pioneers, AOL must shift its energy from doing only what other Internet companies attempt to expand their customer base.
AOL must be careful to not use Bebo as a tool merely to tread water and remain a fading company. Though Bebo’s usage has declined over the last twelve months, social networking clearly is not going anywhere. To harness its potential for company growth, AOL must internalize Bebo’s user base and reemerge with a strong derivative concept. One suggestion includes resuscitating AOL Instant Messenger (AIM) by allowing real time messaging between Bebo users. The worst thing that can happen is that AOL owns Bebo in name only and refuses to take advantage of Bebo’s potential as a springboard for its viability.
Bloomberg has more here.
