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A roundup of the latest high-tech news from The Associated Press:

• AOL looking to sell or shut down social site Bebo

SAN FRANCISCO — The struggling Internet company AOL Inc. plans to sell or shut down the online community nearly two years after buying it for $850 million in an expansion of its social-networking ambitions.

In an e-mail to employees Tuesday, Jon Brod, who runs AOL’s startup acquisition and investment unit, AOL Ventures, said Bebo would need a "significant investment" to remain competitive.

Although Bebo has been in the shadow of rivals such as Facebook, it has been strong in foreign markets, including Britain. AOL wanted to tap that strength abroad to drive traffic to AOL’s other free, ad-supported Web sites, especially internationally, while leveraging AOL’s instant-messaging communities, AIM and ICQ, to try to grow Bebo in the United States.

But Bebo’s audience has instead been slipping in the U.S. According to comScore Inc., Bebo had 5.1 million U.S. users in February, down from 5.8 million a year earlier and a sliver of the 210 million that Facebook has.

The $850 million in cash that AOL paid for San Francisco-based Bebo in May 2008 made it AOL’s largest deal since it bought MapQuest for $1 billion in 2000 (not counting AOL’s $106 billion purchase of Time Warner in 2001). At the time, AOL was still joined with Time Warner Inc., but it separated from the media conglomerate late last year.

Since spinning off from Time Warner, AOL has sold one property: affiliate marketing business Buy.at, which it sold in March to Digital Window Ltd. for an undisclosed price. Digital Window runs a network of affiliate marketing sites, which steer customers to e-commerce sites in exchange for a cut of sales.

• Overstock regains compliance with Nasdaq rules

SALT LAKE CITY — Overstock.com Inc. (Nasdaq: OSTK) said it has regained compliance with the Nasdaq Stock Market’s requirements for filing regulatory documents.

The online retailer said late Monday it was notified by Nasdaq of a violation in November after filing its third quarter earnings report. The 10-Q filing wasn’t reviewed in accordance with certain accepted auditing standards.

But after it submitted a plan for compliance, Overstock.com said, Nasdaq granted an exception.

• Rhapsody cuts monthly music plan to $9.99

LOS ANGELES – Subscription music service is dropping its monthly price to $9.99 from $14.99, hoping that loads of iPhone users who sampled it will now pay for all-you-can-listen access.

Several companies have announced their intention to launch similar music plans that let people listen to songs that are stored on remote computers and streamed to their smart phones wirelessly. Such music services, based on so-called "cloud" computing, are challenging Apple Inc.’s system of having consumers buy and download tracks for playback on iPhones and iPods.

The subscription plans have yet to take off. But as cell phone networks have gotten faster and more capable of handling large amounts of data, more companies are beginning to offer cloud-based music services.

Apple itself is believed to be developing a cloud-based music offering after its acquisition in December of Lala.com. That site lets people purchase songs to stream online from a digital locker for 10 cents apiece.

Rhapsody says it has an advantage over other subscription plans because it has an established user base – about 675,000 at the end of 2009. Also, it received about $51 million last week when it spun off from parents RealNetworks Inc. and Viacom Inc., although much of that money is earmarked for advertising on Viacom cable channels such as MTV and VH1.

Sensing a shift in consumers’ habits, recording companies have recently agreed to lower the royalty rates they demand from subscription services, in hopes of giving the services the potential to grow faster. Sales of songs on Apple’s iTunes have yet to offset the decline in CD sales.

Rhapsody also is launching an application for smart phones that use Google Inc.’s Android operating system.