AOL has promoted Stephane Panier to the role of president at social network Bebo, which it acquired last year for $850 million.
Panier, who joined AOL in January after six years at Google, had previously been serving as chief operating officer of Bebo.
Joanna Shields, who was CEO of Bebo when it was acquired, left AOL in May. Before she left, Shields was head of "People Networks," a new AOL division devoted to social networks. Last week, AOL CEO Tim Armstrong announced that People Networks would be nixed in a restructuring.
Bebo has been placed in a new division called AOL Ventures, and Panier will report to Jon Brod, executive vice president of AOL Ventures.
The $850 million Bebo buy did not turn out to be AOL's greatest success story, to say the least. Time Warner CEO Jeffrey Bewkes admitted that the company "may have overpaid," and much of Bebo's senior management soon began departing.
Don't believe everything you read on Bebo.
That's the message an angry mother is sending by suing six U.K. newspapers that lifted a story off social-networking site Bebo about her daughter's supposed wild party.
The Bebo invite promised the "party of the year," for the teenager's 16th birthday. Subsequent posts on Jodie Hudson's Bebo account spoke of underage drinking, sex acts, and violence that occurred at the celebration.
Several newspapers ran the story, along with pictures lifted from Jodie Hudson's Bebo account, alleging that 400 partying teens responded to the Bebo and Facebook invites and chaos ensued. Some even said that Jodie's mother had punched her in the face out of anger.
But the story isn't true, according to mother Amanda Hudson, and she's suing for defamation and breach of privacy. According to U.K. newspaper The Independent, she also claims that she has received abusive phone calls regarding the party and her daughter has suffered from the "privacy breach."
In a letter to the newspapers, she explained that there was no underage drinking, no sex, no violence, and no stealing--all parts of the story her daughter told on the Web. She also said that the family hired private security to maintain the bash, and police were never called to the family's $8 million Spanish villa on May 3.
Lawyers told the paper that the case may be a legal landmark because there is no precedent in disputes involving third parties who use or publish information from social-networking sites. Hudson's lawyer, David Price, noted that the case raised important issues of libel, privacy, and copyright and added that, due to social-networking sites, teenager's embellished rumors are now on display like never before.
The new development also raises questions about why the daughter and fellow Bebo friends would tell the fictional tale and whether the reporters validated the information they found on the site. Hudson claimed they did not contact her daughter for permission. However, the information was publicly posted online, and similar situations have led to law enforcement shutting down parties after discovering them online.
The story has since been removed from the UK TimesOnline, although it remains on Sky News, Daily Mail Online, and The Register.
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