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AOL has bought Bebo, one of the largest social networking sites (according to sources) for $850M. Bebo claims to have more then 40 million members and has its biggest audience in Ireland, New Zealand and the U.S. AOL says that the merger is to offer a wider scope to its advertisers and also to appeal to the desires of its users. This new merge may be the start of a new war for web space against Google and Microsoft and this only further supports the idea that social network advertising is the way to go to penetrate the advertising segment. If these mergers continue and Microsoft manages to take over Yahoo we could be seeing all out bid wars and if you ask me Google will still stay on top because 66% of the search market and ownership of YouTube says so.

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