According to The Wall Street Journal (via Reuters), AOL looks to have struck a deal with private investment firm Criterion Capital Partners for the social network site, Bebo.

We reported in April that AOL was looking to sell or shut down the online social site Bebo, just two years after buying it for US$850 million.

Back in April an email was sent to employees by Jon Brod, who heads up the firm’s start-up acquisition and investment arm for AOL Ventures, saying that the social networking site would need a "significant investment" to remain competitive.

Spokespeople for AOL and Criterion Capital Partners declined to comment on the report though The Wall Street Journal sources said that the Bebo sale would be done at a fraction of the price that AOL originally paid.

Do you still use Bebo or is Facebook your preferred social networking site?