It looks as though the once wildly popular Bebo is on the rack.
If memory serves it was the hottest property around and was fought over by the likes of Yahoo only to fall to AOL on an exuberant valuation for $850m two years ago.
Well its no longer seen as 'core' at AOL and as they readily admit they don't have the money for the fight against Facebook.
Here a snip from the AOL memo:
“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. AOL is not in a position at this time to further fund and support Bebo in pursuing a turnaround in social networking"
All this is a long way from what was said at the time :-
"This is a tremendous acquisition and one I think is game-changing for AOL," said the company's chairman and chief executive, Randy Falco. "Bebo will be the cornerstone of our strategy."