AOL - BEBO - Pepsi - MySpace - MediaBytes March 14, 2008

AOL will pay $850 million to acquire BEBO , the third-ranked social networking site in the US with a worldwide user base of 22 million monthly users. AOL plans to integrate the site with its instant-messaging platform, growing its total audience to 80 million users. Bebo reportedly generated $20 million in revenue and earned $5 million of EBITDA in 2007. In 2009, revenue is expected to reach $125 million with EBITDA totaling $50 million. PEPSI will rely entirely on new media to promote a new no-calorie fruit drink called Tava. The soft-drink maker will turn to banner ads, a new web site and other online promotions to generate buzz for the product. Ads will be placed on Oprah.com , AOL, dailycandy.com , Evite and other popular destinations to reach men and women ages 35 to 49. The experiment is meant to generate word-of-mouth buzz. MYSPACE has launched a beta test of its new developer platform. The platform uses Google’s OpenSocial specifications, co-created by MySpace. It will allow users to install applications and widgets on their MySpace profiles, a feature that drastically increased Facebook usage. ZENITH MEDIA became the first company to subscribe to Nielsen’s new out-of-home ratings. The Out-of-Home Report will launch next month, tracking media consumption using cell phone-based technology. Nielsen intends to chart media exposure that occurs in bars, shopping malls and other public destinations. EA took its bid for TAKE TWO hostile, after having its $2 billion bid rejected. That price translates to $26 per share, a 64% premium on the price before the offer was announced. EA will now bring its offer directly to shareholders . Read more at http://www.ShellyPalmer.com

Blip | March 14, 2008

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