Bebo bought by founder for $1m

OUTDATED social networking site Bebo looks set for a relaunch after one of the founders who sold it for $850 million (£560m) five years ago bought it back for just $1m.

Bebo, which was once an early rival to Facebook, was sold to AOL in 2008 but plummeted in value as users ditched it in favour of more fashionable sites.

It was sold on again in 2010, for just $10m, and sought bankruptcy protection in May this year.

Co-founder Michael Birch has now bought it back at a knockdown price and announced his plans, ironically, on Twitter. “Can we actually reinvent it? Who knows, but it will be fun trying …” he wrote.

Birch set up Bebo in 2005 with his wife Xochi. At its peak it boasted 40 million users.