Tuesday, April 06, 2010

Lunacy, Steve Case and Ted Turner............

If I were a betting man I would bet that Ted Turner would lasso Steve Case if he found him walking across one of his vast ranch properties. Lasso him, dally up his catch rope and spur his steed as hard and fast as he could go.

For the ass-beating Turner took on his AOL shares after Case cut the deal with the Time-Warner idiots I bet Turner wouldn't slow his horse down any time soon.

The jet-setting Case, the guy who flew the globe after the deal was inked doing little if anything, ran AOL into the ground. They had it. They really had an opportunity to control the internet medium and blew it. Harvard should showcase these guys as bumbling idiots turning a fortune into pennies. Any yes folks, BEBO is a POS site befitting Steve Case.

Here is the latest buzz on AOL.........

AOL Inc. said Tuesday that it is evaluating whether to sell or shut down Bebo, the social-networking site it acquired for $850 million two years ago in a bid to reinvent itself by tapping into the social-networking craze.

"Bebo, unfortunately, is a business that has been declining and, as a result, would require significant investment in order to compete in the competitive social networking space," Jon Brod, executive vice president of AOL Ventures, said in a message to employees.

"AOL is not in a position at this time to further fund and support Bebo in pursuing a turnaround in social networking."

AOL scooped up the social media site in 2008 under a previous management team when the struggling Internet company was owned by Time Warner Inc. The deal came amid AOL's attempts to transform itself from a subscription-based service for connecting to the Internet to an ad-supported media business. It represented a bet that consumers would use social-networking sites as their prism for navigating the Web, and that advertising dollars would follow.

Several analysts at the time questioned whether AOL overpaid for Bebo. Time Warner Chief Executive Jeff Bewkes called Bebo the "riskiest acquisition" his company made that year.

The site never gained a foothold in the U.S. and steadily fell behind the competition. Bebo attracted 5 million unique U.S. visitors in February, down 12% from the same period last year, according to comScore Inc. In contrast, Facebook attracted 111.8 million unique U.S. visitors in February, nearly double the size of its audience in February 2009.

"We've known this has been a declining asset since just beyond day one that they bought it," says Ross Sandler, an Internet analyst with RBC Capital Markets. "It is a sunk cost at this point."

AOL said it expected to decide on Bebo's fate by the end of May.

The move comes four months after AOL separated from Time Warner. AOL is attempting to reinvent itself by becoming a top creator of news, information, entertainment, local and other digital content.

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