AOL signals the end of Bebo

AOL has not seen a return on its purchase of Bebo

AOL is looking to close down or sell social networking site Bebo, according to multiple reports.

Economic news site PaidContent cited an internal AOL memo suggesting that the company had not seen the expected returns after acquiring Bebo in 2008 for $850m.

AOL had high hopes for Bebo at the time, but the company later showed signs of regretting the deal.

"As we evaluate our portfolio of brands against our strategy, it is clear that social networking is a space with heavy competition and where scale defines success," the memo read.

"Bebo, unfortunately, is a business that has been declining and, as a result, would require significant investment in order to compete in the social networking space."

Further reports have suggested that AOL may also sell its stake in instant messaging service ICQ.

AOL has been looking to rebrand itself and drop its unprofitable ventures since its spin-off from Time Warner. The company has switched from providing multiple internet services to focusing on web news and content.