CNET NEWS -- Mar 13 -- AOL has acquired Bebo. The price tag, according to the AOL statement, is $850 million in cash. Neither company has yet stated when the deal is expected to be closed. Rumors had floated over the past few months that Bebo, which has over 40m members, was up for sale. Reports suggested a $1 billion price tag.

MORE NEWS @ SOCIAL NETWORKING WATCH

Bear Sterns gets sold for $270 Million......10% of what it was worth 3 days ago....with the USA entering what is obviously a financial crisis.

Around the same time, Bebo gets bought for $850 million ????

What kind of world is this?

Bear Sterns..... sold for $270 Mill
Bebo ..... sold for $850 mill

Wow.

Marc Lesnick
Conference Organizer
Social Networking Conference

Bebo's sale will fuel the motivations of more investors and more competition into the already crowded social networking space.

Ultimately, however, users are tired of traditional advertising. Social networks offer a venue for a new kind of targeted advertising. There's lots of room for new, more targeted players. I'm watching the white label social networking and dating space especially. Ultimately, I think Ning, and other social network enablers will do well.