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AOL confirm as being notorious for making bad bets.
I really can't believe how often these giant corporations throw hundreds of millions of dollars at companies they then shelve or sell at a loss just a few years later.
There's some accounting voodoo with capex that brings incentives into the whole process.
No they are just clueless, Bebo was purchased for cash.
Perhaps I'll rephrase: they use the accounting voodoo as an excuse to buy stuff they have no business acquiring, as their MBA textbooks told them about capex and operational leverage.
No! They be taking Bebo's moeny!

(sorry, couldn't resist. That typo just reads like lolcat to me)

I've been on Bebo the site design is wonky and confusing. What do you expect?