Wow! This is amazing news! AOL is now going to be able to roll it's user base right into the bebo mix, and add 40 milion users--probably with very little overlap--pronto. Smart move! $$850 million, cash.

Susan sez: Here's the deal, and I am impressed with it:

• AOL grows user base, asap--and ages it down from their core audiences outside of TMZ.com by, oh, 20% (user base more appealing to advertisers)
• AOL has another tool for international expansion--an area where they can effectively compete at a reasonable margin
• Great platform to look ahead to stronger and more integrated mobile extensions, for US and abroad
• More sites to instrument to offer improved ad delivery and targeting--this will give them more competitive positioning with advertisers--and more data intelligence about a more varied--and international--group of users
• Mobile. Did I say mobile? Mobile social network=future=$$$

Facts:
bebo has about 40 million users worldwide, it's in the top 3 social networks in the UK, and is number 1 in Ireland and New Zealand, and number 3 in the U.S. 78 PV average user, per month.

Quotes:
“Bebo is the perfect complement to AOL's personal communications network and puts us in a leading position in social media. What drew us to Bebo was its substantial and fast-growing worldwide user-base, its vision of a truly social web, and the monetization opportunities that leverage Platform-A across our combined global audience. This positions us to offer advertisers even greater reach and marketers significant insights into the desires and needs of consumers.”

--Randy Falco, AOL Chairman

“AOL understands the shifting dynamics of the Web and has clearly demonstrated its commitment to leveraging the ever-increasing power of social networks. With one and the same vision in this area, it was a natural progression for Bebo to join AOL, and we look forward to working together to continue to expand the online social experience globally."
--Joanna Shields, Bebo prez

"Bebo's dynamic management team recognizes that the Internet is less about destination and more about connecting people, culture and lifestyles. This acquisition supports our key objectives – accelerating the growth, engagement and monetization of one of the world's most engaged online communities.”
--Ron Grant, AOL President and COO