AOL is about to offload its troubled Bebo division at a firesale price of below $10 million. The buyer has been named as investment firm Criterion Capital Partners. AOL bought the social notworking site two years ago writing a cheque for $850million.

Bebo plunged into the red last year as post-tax profits fell 143 per cent to the end of May 2009. While the sale at that price is seen as bad for AOL, some analysts were amazed that the outfit even found a buyer. Bebo would require massive investment to rejuvenate and and only has a meaningful presence.

The site a shrinking member base and looks like it has not had a lick of paint for decades. While few social notworks make money Bebo really is a money pit for AOL.

Criterion is famous for turning around such outfits so it might do ok with Bebo.