AOL will be expanding their social networking presence, with an offer out for Bebo at $850 million in cash. Bebo is a relative newcomer to the Internet as a whole, being only around three years old, and has a relatively small market share of about 1.18%, but even that small percentage makes it the 3rd most popular social networking site used.
With AOL's massive infrastructure and for-better-or-worse over the top advertising, they can likely boost the popularity and notoriety of the site considerably. They see it as a good fit to their existing services, and it should give them a jump start in competing with MySpace and others.