Yahoo says goodbye to big ad contract with Bebo

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Bebo, the social networking site bought by AOL for $850 million (which just closed today), is reported to not renew its current advertising contract, which ends in September 2009, with Yahoo.

The current deal with Yahoo will only cover Australia, Ireland and the United Kingdom, with the other localized versions of Bebo to carry AOL’s Platfrom ad network. The loss of the deal will also see Yahoo not having a bid ad contract with any big social network, with Google having MySpace and its own, Orkut, and Microsoft having Facebook.

AOL has also announced that Bebo, AIM, ICQ and many of its community platforms will form a new uit dubbed the "People Networks". Joanna Shields, who is president of Bebo, will head the new unit as president and corporate EVP.