AOL successfully expands its line of interest with its acquisition of online social network Bebo. Bebo has been acquired by AOL on an $850M deal. This newly acquired network will be used as the focal point of interest of AOL’s People Networks business unit. With Bebo under its banner AOL will be able to deliver a more personal experience to its consumers. Bebo completes AOL’s third strategy which is social network. Since Bebo is a new unit of AOL, its chief executive Joanna Shileds will report directly to AOL’s president and COO Ron Grant.

Though Bebo is already a great place where advertisers, brands and media companies connect effectively, AOL will not be using Bebo as it is. The company plans to do some upgrades and improvements in the social network site in order for it to serve customers well. One improvement is the integration of instant messaging, chat, and email capability. And as one company under AOL, Bebo will also use AOL’s music as well as entertainment content.