While Facebook makes a bold move into cryptocurrency to capitalise on its multi-billion user base, a social network that was once a credible competitor to it has quietly been snapped up by a subsidiary of Amazon. TechCrunch has learned and confirmed that Bebo, one of the earlier platforms to let people share thoughts and media with their friends, has been acquired by Twitch, the streaming video platform owned by Amazon. Together the two will be working on building out Twitch’s esports business, and specifically Twitch Rivals.
A spokesperson for Twitch confirmed the acquisition, which includes both people (around 10 employees) and IP, but declined to provide further comment.
From what we understand from our sources, Twitch paid less than $25 million for the company earlier this month, after beating out at least one other bidder, Discord (which itself has been building out its own esports business). Indeed, LinkedIn profiles for ex-Bebo employees — see here, here, and here — now at Twitch note June as the changeover date. (Note: original sources say $25 million, others close to the deal say it was materially less than this.)
It has been a long and winding road for Bebo over the years. Starting out way back in 2005 by Michael and Xochi Birch as an early social networking site, Bebo quickly became the market leader in a couple of English-speaking countries, specifically UK and Ireland.
Bebo’s growth trajectory and the bigger opportunity in social were enough to get it acquired for about $850 million by AOL back in 2008, apparently beating out a number of other interested large tech and media companies interested in getting their own social media platform and the audience that would come with it (disclaimer: AOL eventually also acquired TechCrunch, too).
But the deal was a certifiable dud, with Bebo never managing to build on its early traction, and AOL not being in a position to know how to fix that. Less than two years later, it was sold on to Criterion Capital for $25 million.
Yet as the social wheels continued to turn, and even once-global market leader MySpace also fell back as Facebook, Twitter, Instagram and other mobile-friendly platforms pulled out ahead, even that $25 million price turned out to be too high. After Bebo filed for Chapter 11 bankruptcy protection, the original founders, the Birches, bought it back in 2013 for $1 million with a pledge to reinvent it.
And so they did, putting in place a small team led by Shaan Puri, who worked on a number of ideas to see which of them could fly. (And I don’t know if this was a tongue in cheek joke about how challenging they knew the task would be, but it seems that the holding company set up to house some of the IP and legal aspects of the endeavor was called “Pigs in Flight.”)
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