Bewkes to shareholder: Just pretend Bebo is MySpace
Time Warner CEO Jeff Bewkes's oops-did-I-Bebo-that tour continues. Yesterday at the Deutsche Bank Media & Telecom conference, a shareholder asked Bewkes how $850 million for a third-place social network jibed with Bewkes's claim that disciplined capital allocation is a key priority for Time Warner. According to PaidContent, Bewkes said, “We did make a bit of a stretch." He then tried to reassure the worried shareholder saying, it was the “same thing when News Corp. bought MySpace.”
If we're the shareholder, we're not calmed. MySpace is far more popular in the U.S. than Bebo. Despite that, ad partner Google still can't figure out how to make money off it. Why doesn't Bewkes just admit it? He had other things in mind when he bought Bebo. (Photo by AP/Peter Kramer)