Bebo Owner: ‘It’s Definitely Not Going Out Of Business’

A major outage in service at Bebo apparently does not mean the social network has bitten the dust indefinitely, despite what its co-founder may have initially thought.

The social network went offline Monday night, prompting this from Michael Birch…

But, through the site remains offline, a spokesperson for Criterion Çapital Partners (CCP), which acquired Bebo from AOL (NYSE: AOL), tells paidContent:

“They were doing an aggressive set of updates that put the site down and they are working to get it back up. They definitely are not going out of business – they actually have continued to reinvest in the platform.”

The company is profitable, the spokesperson said.

AOL bought Bebo from Birch and co-owners for an over-the-top $850 million. Since being sold to CCP, Criterion has slowed but not reversed Bebo’s traffic decline. It enlisted Hi5 co-founder Akash Garg and Xbox co-founder Kevin Bachus as it set about re-investing in technology upgrades, while Birch returned to re-invest and act as an advisor. It has also redesigned.

SeeSaw, the UK VOD service which CCP bought a majority of in summer 2011, recently went offline.