Yahoo! is understood to be weighing up a $1 billion (£500 million) bid for the social networking site Bebo.
The potential purchase comes after it bid for Facebook last year, with discussions on that occasion ending with Facebook rejecting Yahoo!’s advances (see
Facebook Rejected Yahoo! Bids).
Bebo is the UK’s most popular social-networking site and recently hired Angel Gambino from MTV as its VP of music.
In April, Bebo became the first social-networking site to sell music to its users.
If Yahoo! is successful in its pursuit of Bebo, it will go head-to-head with News Corp, which bought MySpace in 2005 (see MySpace Could Be Worth $15 Billion).
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