Internet service provider AOL has agreed an $850 million (£418.68 million) deal for the world's third most popular social networking website Bebo.

According to BizReport, the deal will bring Bebo's 40 million unique users together with the 40 million users of AOL's AIM and ICQ applications to create the second-largest social network ahead of Facebook and behind MySpace.

The site allows users to create their own profile page, where they can add music, video, photos and blogs.

Between January 2007 and January 2008, Bebo saw the fastest growth in users of any social networking platform - 688 per cent compared to an 11 per cent rise for Facebook and an eight per cent increase for MySpace.

It is also ranked as the 11th most popular site in the UK and the 85th most popular English-language site on the internet.

Bebo, which stands for blog early, blog often, was created in 1995 by husband and wife Michael and Xochi Birch.