Tim Warner Inc.'s AOL unit announced Monday it has completed its purchase of social media network Bebo, Business Week reported.

AOL agreed to buy Bebo in March for US$850 million.

San Francisco-based Bebo will be at the centre of AOL's new People Networks business unit, according to Business Week.

People Networks will merge AOL's current community applications and tools, such as instant messaging, chat and e-mail, into Bebo, in hopes that users will merge their AIM and Bebo profiles, using common screen names and not re-registering, Business Week reported.

People Networks will also include other recent AOL buys, such as widget technology company Goowy Media and question and answer service Yedda. AOL and Bebo content and applications will also be cross-distributed to expand the networks' scale, according to Business Week.

Currently, Bebo has more than 40 million users, and is especially popular the United Kingdom.