Bebo founders buy back worthless social network for $1million after selling it to AOL for $850million just five years ago

Michael Birch and his wife, Xochi Birch, netted some $600 million from the sale of their social network in 2008

At one point, Bebo had 40 million users but two months ago the company filed for bankruptcy

Downfall was due to AOL's mismanagement and the rise of Facebook

Mr Birch tweeted today they'd bought back the company for $1m for 'fun'

The founders of Bebo have bought back the worthless social network for $1 million after selling it to AOL for $850 million just five years ago then watching it die.

Husband-and-wife team Michael and Xochi Birch netted some $600 million from the sale but the business crumbled shortly after the acquisition thanks to AOL's mismanagement and the rise of Facebook.



But the minted British tech wiz tweeted today that he and his equally brainy spouse had snapped up the company they made a killing from for a song - 1/850th of the sale price - and did it all for 'fun.'

Millionaires: Michael Birch, right, and his wife, Xochi Birch, left, netted some $600 million from the sale of Bebo in 2008

We just bought Bebo back for $1m. Can we actually re-invent it? Who knows, but it will be fun trying... — Michael Birch (@mickbirch) July 1, 2013





'We just bought Bebo back for $1m. Can we actually re-invent it? Who knows, but it'll be fun trying..' he wrote.

Bebo, which stands for 'Blog Early, Blog Often,' was founded in 2005 and in its hey day had some 40 million users around the world.



AOL paid the exorbitant sum boasting that the purchase was a 'game-changing' step that would put it 'squarely in a leading position in social media.'

Dead: Bebo, pictured, in its prime had some 40 million users but quickly crumpled after AOL acquired it

But it did nothing of the sort. Actually, the abysmal acquisition got AOL's former CEO Randy Falco fired.



Two years after the internet giant bought the social network, private equity form Criterion Capital Partners tried to revive it for less than $10 million but failed and two months ago the company filed for bankruptcy.



Michael and Xochi Birch, who have three children together, celebrated the stellar 2008 sale by splashing their cash, buying a mansion in Pacific Heights for $29 million.



Profits: The couple celebrated the stellar 2008 sale with a mansion in Pacific Heights, pictured, for $29 million

Between wiping his hands of the imploding website and buying it back, Birch has started a private members club in San Francisco called The Battery.



The exclusive joint's website boasts: 'The Battery is designed to engage and stimulate forward-thinking minds in the arts, technology and other thriving industries.

