Bebo Files Voluntary Bankruptcy Petition
June 11, 2013
Looks like the social networking company Bebo is caught in a tangled web. The TechCrunch article “Social Network Bebo Has Filed A Voluntary Chapter 11 Bankruptcy Petition” talks about the messy battle between the majority shareholder Criterion Capital Partners and the minority shareholders which include co-founder Michael Birch, Hecker Consultancy and SV Angel. In lieu of this Bebo.com Inc filed a voluntary petition for Chapter 11 Bankruptcy. An initial judgment was filed in February of this year by some of the smaller shareholders for the court to appoint a receiver to control the company because they felt it was being mismanaged by Criterion. Bebo was once a flourishing and profitable company but lately has been headed in a downward spiral.
“Once a fast-growing social network that was particularly popular in the UK and Ireland — in the UK in 2008 (when Facebook was much smaller) it claimed to have 40 million users who spent an average of 40 minutes each on the site. Bebo was bought by (TechCrunch owner) AOL for $850 million in 2008 but then sold to Criterion for $10 million only two years later.”
Adam Levin was the CEO in February but his future as the chief executive office at Bebo hangs in the balance as accusations of mismanagement swirl around. As stronger players such as Facebook entered the scene Bebo seems to not have been able to keep up with the competition and its popularity and overall business name faltered. With such initial success one must wonder if popular sites such as Facebook and MySpace could follow down the same path and one day be replaced by the next big thing.
April Holmes, June 11, 2013
Sponsored by ArnoldIT.com, developer of Augmentext
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