Karma’s a B*@ch: AOL Loses $840 Million on Sale of Social Network Bebo
Ted Turner made one of the worst business decisions in history when he allowed AOL (NYSE: AOL) CEO Steve Case to purchase Time Warner (NYSE: TWX) back in 2000. Apparently, AOL’s bad karma with Time Warner has come back to haunt them.
Bloomberg reports that AOL lost 98.8% of $850 million on their investment in social network Bebo. AOL unloaded the company to Criterion Capital Partners LLC for $10 million.
But have no fear: the company intends to book a tax benefit of $275-325 million. These guys should start doing business with Transocean (NYSE: RIG).