It looks as if the rumours were true, although not quite on the money, so to speak, with Bebo's rumoured billion-dollar-buy-out just announced - but for a mere $850 million.

Time Warner's AOL has announced it will buy the social network for $850 million in cash, to bolster its consumer internet offerings.

Bebo was started by Brit Michael Birch and his partner in 2005, claims around 40 million monthly users worldwide, rates as the UK's top social network and is number three in the States.

"Bebo is the perfect complement to AOL's personal communications network and puts us in a leading position in social media", said Randy Falco, AOL boss.

>> News - Bebo buy-out rumours
>> Via - Reuters