TECH CRUNCH - Mar 10 - Newly independent AOL is still struggling with
the fate of Bebo, the social network they acquired for $850M in
2008. Bebo has fallen from 22M monthly unique visitors when it was
acquired to 14.6M today (Comscore). But even so, Bebo clearly has some
value on the open market. Despite that value, AOL’s best financial
option for Bebo will likely be to abandon it rather than sell it.
Complicated corporate tax rules will let AOL write off the full
purchase price of Bebo if they declare it worthless and abandon the
asset. With Aol’s effective tax rate of ~45%, that’s $380M and change
in their pocket in taxes that they’d be able to avoid. FULL ARTICLE @ TECH CRUNCH
Mark
Brooks: AOL was going to shutter Userplane in similar fashion but
decided to keep it kicking. I hope they do the same with Bebo, rather
than admit failure and defeat, and take the easy option. Shuttering
Bebo would hardly serve the interests of users, or the cash strapped
IRS. Do the right thing AOL! Sell or milk this cow, but don't
slaughter it.
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