AOL has announced it will acquire Bebo, the social media network whose traction is primarily in the UK, Ireland and New Zealand. It currently claims more than 40 million worldwide, as compared to AOL's claimed 80 million across its AIM and ICQ communications network. AOL is set to pay $850 for the company.

On the transaction's closing, current Bebo president Joanna Shields will continue to run the company and its approximately 100 employees, and will report to AOL president and COO Ron Grant.

AOL recently launched Open AIM 2.0 with the aim of allowing developers more access to the AIM network for integration into their sites and apps. AOL chairman and CEO Randy Falco commented, "Bebo is the perfect complement to AOL's personal communications network and puts us in a leading position in social media. What drew us to Bebo was its substantial and fast-growing worldwide user-base, its vision of a truly social web, and the monetization opportunities that leverage Platform-A across our combined global audience. This positions us to offer advertisers even greater reach and marketers significant insights into the desires and needs of consumers."