Bebo files for bankruptcy as shareholder battle continues

Social networking site Bebo has filed a voluntary petition for Chapter 11 Bankruptcy in California, following an ongoing battle between shareholders.

First reported on the Chapter 11 Cases blog, the petition was filed on Thursday by Michael Ong of Burke Capital Corporation.

The move marks the next step in the continual struggle between majority shareholder Criterion Capital Partners and minority shareholders that include co-founder Michael Birch, Hecker Consultancy and SV Angel.
Back in 2008, Bebo was the fast-growing social network in the UK and Ireland, claiming to have 40 million users who spent an average of 40 minutes each on the site.
Bebo was bought by AOL for $850 million in 2008 but then sold to Criterion for $10 million only two years later.
Read the Chapter 11 Bankruptcy filing here