• HostedNews, Thursday, December 9, 2010 1:33 PM

The nerve of some people. Michael Birch, who started Bebo in 2005 and sold it to AOL for $850 million in 2008, has reinvested on the social network and taken on the role of strategic adviser. "Birch says he hopes to help Bebo's current management make the social network 'relevant again,'" according to the Associated Press.

The current team was put in place after AOL sold Bebo to Criterion Capital Partners in June for an undisclosed amount. In June, AOL confirmed selling Bebo to private investment firm. Criterion reportedly offered to pay just $2.5 million for Bebo, but is rumored to have ultimately paid around $5 million. Citing a person familiar with the matter, Bloomberg reported at the time that AOL got less than $10 million for Bebo -- or less than 2% of the $850 million it originally paid. Even before rumors of a sale surfaced in April, corporate tax experts were saying publicly how AOL would be better off dumping Bebo for tax purposes.

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