Yahoo May Lose Ad-Deal With Bebo

May 19th, 2008 at 12:00 am

bebo yahoo

In light of the newly completed acquisition of Bebo , AOL, the new owner will have control over the social network’s ad services.  This spells trouble for Yahoo, Bebo being the biggest social network that they have a ad-contract with.  Bebo will be using Yahoo’s ad platform until September 2009 at which point their contract will end.  With AOL now owning Bebo, renewal of that contract is unlikely to happen and Bebo will probably shift to AOL’s Platform-A ad platform.

Yahoo’s contract with Bebo only covers UK, Ireland and Australia.  Bebo has not yet expanded to the US.  However, with AOL now being the boss, Yahoo will no longer have access to the goldmine Bebo is expanding to.

All this is still speculation but it does make sense for Yahoo to lose the social network.  Bebo’s Joanna Shields gave us a peek into the plan when she mentioned how excited she was about Platform-A’s potential to make ads more relevant to Bebo users.

At this point, everything  looks gloomy for Yahoo, recently enduring the Microhoo fiasco, Icahn’s demands and Google’s surpassing them.  Tough luck for Yahoo but as a loyal Yahoomail and Yahoo Messenger consumer, I still hope things work out well for them.