• Reuters, Thursday, June 17, 2010 12 PM

Did AOL get a measly $2.5 million for Bebo? That's the price private investment firm Criterion Capital Partners -- which has now acquired the social net -- originally offered to pay AOL, a source tells Thomson Reuters' PEHub blog.

"AOL told them to bulk it up a bit, and my source says he would be surprised if it got above $5 million," reports PEHub's Dan Primack. The source also tells Primack that Criterion was the only Bebo bidder. "Whether the final price is $3 million or $5 million or $8 million, it's still a massive loss for AOL, which bought Bebo two years ago from venture capitalists for $850 million," he concludes. Industry blog Mashable broke news of the would-be deal on Wednesday. In a press release issued Thursday, both AOL and Criterion confirmed the acquisition. Terms of the deal were not disclosed, but AOL did say: "The transaction will also create a meaningful tax deduction, which should allow us to more effectively manage our tax strategy."

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