Today, we are sharing a story of a startup which was sold for $850 million and bought it back for $1 million in 5 years.
We are talking here about the startup Called Bebo.
Bebo was launched by Michael Birch & his wife Xochi Birch in 2005 with almost nothing.Both have co-founded a number of technology companies before Bebo. But the team at Bebo played an important role in making it that big.
After the 3 years of launch, both sold Bebo to AOL for $850 million.The Birches’ 70% stake in Bebo yielded a profit of $595 million. After the acquisition, Bebo started to struggle amidst increasing competition from rivals like Facebook and Twitter.
In July 2013, five years after AOL bought Bebo, Birch bought the company the founded back from digital media investors Criterion Capital Partners, who bought it from AOL for less than $10 million. Birch paid just $1 million (£760,000), saying that he planned to reinvent Bebo into something new.
Bebo Now is all-in-one streaming software with an amazing community.