AOL-owned social networking site Bebo is to suffer as its parents cuts jobs and most strikingly it is freezes production of its groundbreaking web TV drama's, which were once going to be the future.MediaGuardian reports that the social networking site will cut the team behind 'KateModern' and 'Sofia's Diary' and the 20 strong Bebo team in the UK will be cut right back.The news follows the announcement earlier this week of 100 more job cuts at AOL as CEO Tim Armstrong seeks to turn the business around by slashing staff in an effort to reduce costs and turn AOL into a content driven digital business.'Kate Modern', which ended last year, helped drive the early popularity of Bebo and spawned a number of imitators (including the BBC). While another of its web dramas 'Sofia's Diary' was sold to UK broadcaster Five marking the first time an online series made the transition to a major UK broadcaster.The blow for Bebo follows reports at the start of this year that AOL was planning to sell Bebo, less than a year after it was acquired for $850m (£417m).The rumours were rubbished at the time, but Bebo has fallen from prominence since AOL bought it and its valuation is thought to have plummeted. Some suggested it was worth as little as $200m (£140m).With Armstrong's focus on turning AOL into a content driven company the question becomes is there a place for Bebo in the new Armstrong regime?There remains a possibility that Armstrong could off load Bebo ahead of AOL's spin-off from parent Time Warner.If an announcement is about to made it could come as AOL prepares for another round of job cuts, which could see as many as another 1,000 lose their jobs.
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Gordon Macmillan
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