AOL will pay $850 million to acquire BEBO, the third-ranked social networking site in the US with a worldwide user base of 22 million monthly users. AOL plans to integrate the site with its instant-messaging platform, growing its total audience to 80 million users. Bebo reportedly generated $20 million in revenue and earned $5 million of EBITDA in 2007. In 2009, revenue is expected to reach $125 million with EBITDA totaling $50 million.
PEPSI will rely entirely on new media to promote a new no-calorie fruit drink called Tava. The soft-drink maker will turn to banner ads, a new web site and other online promotions to generate buzz for the product. Ads will be placed on Oprah.com, AOL, dailycandy.com, Evite and other popular destinations to reach men and women ages 35 to 49. The experiment is meant to generate word-of-mouth buzz.
MYSPACE has launched a beta test of its new developer platform. The platform uses Google’s OpenSocial specifications, co-created by MySpace. It will allow users to install applications and widgets on their MySpace profiles, a feature that drastically increased Facebook usage.
ZENITH MEDIA became the first company to subscribe to Nielsen’s new out-of-home ratings. The Out-of-Home Report will launch next month, tracking media consumption using cell phone-based technology. Nielsen intends to chart media exposure that occurs in bars, shopping malls and other public destinations.
EA took its bid for TAKE TWO hostile, after having its $2 billion bid rejected. That price translates to $26 per share, a 64% premium on the price before the offer was announced. EA will now bring its offer directly to shareholders.